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  • Category: Mutual Funds

    What is called Systematic Investment Planning?

    What is called Systematic Investment Planning?
  • Answers

    2 Answers found.
  • The systematic investment means an investor invests in a mutual fund as a fixed amount every month for a year or more. A investor can invest the money by way of auto debit facility (ie) The fixed amount will be debited from your account every month and the units will allocate on the basis of NAV at the particular date of your investment.

  • Systematic Investment Plan also called in short SIP is a plan that comes with mutual funds. This is a investment plan that managed by fund manager of any mutual funds. In this plan there are three features as described hereunder:

    1. High risk plan
    2. Medium risk plan
    3. Low risk plan

    1. High risk plan - In this plan fund manager invest money 90% in stock market and 10% in secured bond. As the name is descriptive this is high risk plan and can give highest growth in investment. It can give high returns. This option must be select if investor can take high risk of capital market.

    2. Medium risk plan - In this plan fund manager invest 55% in stock market and 45% in secured bond. This is most recommended plan to do invest at it is less risky plan and can give suitable growth to investment. This plan can give good return with some secured investment also.

    3. Low risk plan - In this plan fund manager invest 90% investment in secured bonds and rest 10% in capital market. This is the most secured plan and we can choose this if we want to fully secure our investment. This plan can give returns similar to investment made in banks and also can give some high return in some cases.

    Risk factors

    Please note that all the investment made in mutual fund are subject to market risk. We should read all the terms and conditions before taking decision of investment.


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