Q&A

What should I check before starting SIP?

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What should I check before starting SIP?

7 things to know before starting to invest through Mutual Fund…

  1. Why you want to start a SIP: Do you have a Goal in mind.
  2. Know the Money Value of the Goal.
  3. Is it a Short, Medium or Long Term Goal.
  4. Choose the Right Asset Class to Reach the Goal.
  5. Which One is the Right Scheme for Your SIP.

Which is the best date for SIP deduction?

25th of the month – Amount invested is Rs 12 Lakhs and SIP invested amount would have grown to Rs 27.65 Lakhs. 30th of the month – Amount invested is Rs 12 Lakhs and SIP invested amount would have grown to Rs 27.5 Lakhs. Conclusion: 25th of the month is best, followed by 1st, 5th and 10th dates.

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Is it good time to start SIP now?

When You Do Not Wish to Take a Risk: Mutual funds and risk go hand-in-hand, but SIPs spread out the risk over a period and reduces the risk. The longer your investment, the lesser is the risk. That is why the best time to start sip is when you are fine with the investment period.

Does date of SIP matter?

As you can see, the difference in your investment value at the 5th and 25th of the month is less than Rs 2,000, and that’s on an investment amount of Rs 12 lakh. There is, therefore, no strong case for a specific SIP date. Any date will work – so pick what’s most convenient for you.

Should I start new SIP when market is high?

So, does it make sense to start SIP during market highs? The answer is Yes! Remember, there is no ‘bad time’ to start investing via SIP if your goals are more than 5 years away. Waiting for the right time to start investing could hamper your financial goals.

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Should I stop SIP when market is high?

Timing the market would be a bad decision as waiting for the market to correct to start investing would result in a loss of opportunity. Hence, investors should continue with their investments in mutual funds when the markets are high as the market will eventually go up and so will the mutual funds’ returns.

Can Systematic Investment Plans (SIPs) help you recover interest on home loans?

Systematic Investment Plans or SIPs can help you achieve a variety of financial goals. But did you know SIPs can also help you recover the interest you pay on your home loan?

Should I clear my debts or pay off my loan first?

If you were to ask this question of a financial planner, the chances are that he would tell you to repay the loan first. That advice is based on what is a first principle of personal financial planning—clear your debts before you save. That principle is a sound one and should almost always be followed. I said ‘almost’ always.

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Should you pay off your personal loan before it matures?

If your loan does have this term, visit Credible’s personal loan calculator to determine how much interest you could save by paying off the loan before its maturity date. Then weigh that against the penalty you’ll incur to decide if it’s still the right decision. The average personal loan has an annual interest rate of six to 36 percent.

What do I need to know before applying for a personal loan?

The first thing you need to know before applying for a personal loan is identifying the need or objective for the loan. There are different kinds of personal loans and your needs will determine which one you should get.