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Q.

How does money grow in SIP's ? Are these not effected by Market conditions..?

Tags: money, market conditions, sip's
Asked by Ravindra Aradhyula, 19 May '08 05:34 pm
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Answers (4)

1.

SIP's are also afftectde by market conditions, However the SIP works on the concept that you would be investing an X sum of money every month/period so if the NAV of the fund is depressed due to market conditions you would buy more units and similary if the NAV of the fund is high you would buy less units. In the long run it has been observed that this startegy evens out the volatality and gives one decent set of returns without much stress. Having said this, it is also important that you review your investments at regular intervals so that non-performing funds are weeded out. To max your returns your SIP has to be spread in 5-6 different non identical mutual fund schemes. this may not really work in case of indiviual stocks

for eg if you had invested Rs 10,000/- every month in a scrip like Global telesystems at the height of Dotcom boom and continued it till today you would not have made spectacular gains. On the other hand if you had invested similar amount of money every in ...more
Answered by nelson lewis, 19 May '08 05:54 pm

 
  
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2.

SIP even outs your investment cost. In SIP you will buy more units when market is low and lesser uint when market is up.
Answered by stranger anony, 19 May '08 05:36 pm

 
  
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3.

Do you know that a monthly investment of just 3000 rupees in a well performing mutual fund can yield One Crore in 15 years and 4.6 crores in 20 years. (Presuming returns at 30% per annum compared to 50+% returns by top 15 Mutual Funds in last five years). Who needs Pension Plan or Money Back Schemes when one can make much more.
Another Example. A typical Money back Insurance policy says Put 10K per year for 10 years. Five years after last installment, You will get 2.2 Lakhs Back( LIC MONEY BACK SCHEME). Good Offer?? Think Again!!. SAME MONEY invested in a quality MF for the SAME TIME can give you more than 20 LAKHS (presuming same investments as above). Surprised?? A little COMMON SENSE and CARE can GROW your HARD EARNED MONEY rather than make your Advisor RICH
For this and many other secrets of investing, which your friendly Financial Advisor will never tell you (to make maximum commission from ur investments), Call (09342704696) or email INDRAJIT at krishavinvestments@yahoo.co.in ...more
Answered by krish, 20 May '08 03:29 pm

 
  
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4.

HI
SIP is the best investment plan i know. Because every month we will invest small amount and results good return. It is very less effected with the market conditions.
Answered by sailu lanka, 19 May '08 05:38 pm

 
  
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