Is there any risk in SIP investment?
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Is there any risk in SIP investment?
investing in Mutual Funds via SIP (Systematic Investment plan) involves market linked risks, that are certainly higher for Equity Funds than debt and balanced Mutual Funds. However, the risk in SIP can be managed and reduced by the fund managers and the fund house.
Can I lose money in SIP?
SIPs have losses But as the market keeps falling and you continue to invest your average cost fall. You will be buying more units at a lesser cost. The primary advantage of SIP is to lower the average cost of buying mutual funds.
What is high risk in SIP?
High-risk mutual funds refer to funds that have excellent potential and the ability to provide high returns. However, these funds are very volatile in nature and come with high risks. If you are someone who is willing to take a high risk in order to receive good returns, then you can choose such a fund.
Which company is good for SIP?
The table below shows the best hybrid funds:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| ICICI Prudential Thematic Advantage Fund(FOF) Growth | 17.96\% | 23.97\% |
| BOI AXA Mid & Small Cap Equity & Debt Fund Regular Growth | 17.61\% | 23.63\% |
| HDFC Retirement Savings Fund – Equity Plan – Regular Plan | 17.53\% | 23.09\% |
Is SIP return guaranteed?
Since there is never an assured return in Stocks, the same also applies to an SIP liked Mutual Fund. The value of the return is completely depending upon how the fund is placed in its investments and the Net Asset Value (NAV) as of the day you redeem your units.
What is the difference between sips and fixed deposits?
Rates of interest: The rates of interest that are provided to the investors in case of systematic investment plans are higher in comparison to fixed deposits. Though, the risk factor associated with SIPs is quite high. Fixed deposits assure higher returns to the investor.
What is the difference between FD and SIP?
Money can be invested and withdrawn at any time as SIPs are done in open-ended funds. What is a fixed deposit (FD)? As for fixed deposit (FD), it is a financial instrument that allows investors to put in a lump sum amount for a specific period of time at a fixed rate of interest.
What is an SIP in mutual funds?
If you are new to the world of mutual funds, an SIP is one of the best investment options for you. This way you will learn to make timely investments. You will be able to accumulate a large amount of money in a certain time period. Making an investment in mutual funds through an SIP will offer you good returns also.
Should you invest in SIP or fixed deposits in India?
Lately, a lot of potential investors in India have shown interest in investing in mutual funds (MFs) via Systematic Investment Plan (SIP) and in fixed deposits. This article is aimed at helping people get a clear understanding of the difference between the two along with the benefits they stand to get in choosing either of the modes.