The safest option for saving over a periodby Ravi Kumar Blogger Live
Saving an amount from routine earning and investing it in an avenue which can grow the investment over a period is a common human tendency. The market has got various options where people love to invest in. The mutual fund is one of the known aspects where the investor can get a good return over a period. However, there are many people that doubt the working of mutual funds and if they can offer a good or desired return. Here are certain aspects that one needs to know about the mutual funds and then decide if he wants to go for the same or not.
Is it a viable option?
Well, every tool in the market has certain limitations as well as benefits that one must know and based on that he needs to decide about his investment plan. The same rule applies to the mutual fund market also. The market has options such as stocks, banks, gold and deposits that can offer a good or considerable return. However, in the majority of these avenues, one needs to invest a handsome amount in single go which may not be the case with small investors. In a mutual fund, one can have two options of investing which are lump sum investment and investment in a systematic investment plan.
For many investors, it is a genuine doubt that is investing in SIP a good idea? Well, as per the experts there can be no better idea for a small investor than investing in SIP as one can have benefits in this investment even if the market goes up or down. In case the market goes up the units which are allocated to the investment may be at a higher price and hence he can have a few units only, but the overall price of all the units goes up.
If the market goes down, one can have more units allocated and hence the number of units increases. Hence irrespective of the market investment in SIP can prove as a viable option.
SIP is an option that can have a number of benefits. The foremost important benefit is one can start investing a small amount and that too in instalments. Those investor who wants to plan an event after a few years may get a good amount at the required time if the same is planned well with the help of SIP. The system of investment and redemption of units is quite easy to understand and also completely transparent which can prove helpful to the ordinary investor. If the investor has invested the amount in an open-ended scheme and needs the money, he can have it within a few days of requesting the amount. Hence liquidity is also maintained to a good extent. The SIP can be done online, and one can also decide the date of his amount to be
debited from the account. Hence those who want to get an option of investment without facing any financial burden can go for this beautiful investment option easily. Learn more at Gulaq Mutual Fund Blog
Created on Jun 14th 2019 02:16. Viewed 43 times.