Posts tagged ‘Systematic Investment Plan’

September 26, 2011

Introduction to Systematic Investment Plan

Systematic Investment Plan (SIP) is a simple, time-honored strategy designed to help investors accumulate wealth in a disciplined manner over the long period of time and plan a better future for them. This disciplined approach of investing provides with the following benefits:

  1. Power of Compounding
  2. Rupee Cost Averaging
  3. Convenience
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September 24, 2011

Risk and Return Tradeoff in Context of Mutual Funds

Like all the other investment avenues, mutual funds too have investment risk. It is very important to maintain risk and return tradeoff when investing into mutual funds and calculating the returns. It is true that the risks on investments into the mutual funds are lower than the investment into the stocks directly. Because of this reason many investors tend to ignore the risk component while calculating the effective returns from the mutual funds.

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September 24, 2011

Pros and Cons of Mutual Fund Investments

Every investment decision has some pros and cons. And in any case it is not possible to avoid all the cons and have all the pros alone. Both the pros and cons travel together. So it becomes important to balance those pros and cons so that you are able to benefit most out the opportunities available to you.

When you are planning to invest a small sum of money, it is always difficult to decide to which financial instrument to invest as different instruments offer benefits and very few are good enough to get the maximum out of the money.

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