SIP means Systematic Investment Plan. A tool where you invest a specific amount every month. SIPs are usually on moth basis with minimum investment of rs.500 per month. Sip is for investing in mutual funds. The name so earned by this plan is for time to time investing and to abort all the other risk like inflation risk, investment risk other then unsystematic risk which is also known as market risk. Market risk is undetermined . To decrease the risk except that of SIPS in market which includes HDFC mutual funds, Reliance mutual funds, DSP Blackrock mutual funds, ICICI mutual funds, etc.
Coming on to equities, an investment which can shift your residence from Nallasopara to Churchgate or from Malbar Hill to Mira road. The aggressive or high risk taker investor you are more will be the chaces of weakening or strengthening the investment returns. Equities are invested in lumpsum and more likely to trace the stock market. Booming and prosperous market and company gets in more investors while an adverse condition losses them all. As you are aware of rights in equities which includes electing of chairman, participating in companies decisions, etc. The interest earned on equities is fluctuating at greater rates. But maximum earnings can be noticed till 20% and minimum you can make lose of your share.
SIPs do not give rights as that of equities but they are stable enough with risk affecting them to provide returns. More or less investing in SIP is not too risky as equity. SIPs do provide finance support as do euities but there is a difference. SIP investors make payments to financial institutions and these institutions invest money in stabilised and growing company. Investing in equities is a personal choice and analysis or may be emotional attachment which fluctuates you gains. Both can be hod in electronis form.
Certain suggestions for SMART investors;-
a) When market is in tough condition do not withdraw from SIP, proceed with the same.
b)SIPs aremanaged by fund managers of financial institutions so they can be trusted. And do not invest in any such SIP which is below AA rated.
c) Equity investors please follow the rule of "Buy low and Sell high" as most of us do just the opposite. Do not panic on the crash of markets.
d) Equity investors invest in Pharmacy sectors, FMCG products and IT sector as they are booming ones.
e) While investing in equities keep a close track on company's progress as certain factors like change of chairman, scandals can affect share prices.
f) From the income tax view, hold your investment for minimum 1 year as returns on it are accounted as Long Term Capital Gains with 10% tax on gains of other investment and no tax for equity gains and bonus shares except for they are sold. If you hold investments for short term i.e.,less than 1 year then you will be subject to 20% tax on investment gains.
g) If you are paying high tax then invest in tax-saving instrument and if not then go for high returns investments.
Investors please check before you invest.
Coming on to equities, an investment which can shift your residence from Nallasopara to Churchgate or from Malbar Hill to Mira road. The aggressive or high risk taker investor you are more will be the chaces of weakening or strengthening the investment returns. Equities are invested in lumpsum and more likely to trace the stock market. Booming and prosperous market and company gets in more investors while an adverse condition losses them all. As you are aware of rights in equities which includes electing of chairman, participating in companies decisions, etc. The interest earned on equities is fluctuating at greater rates. But maximum earnings can be noticed till 20% and minimum you can make lose of your share.
SIPs do not give rights as that of equities but they are stable enough with risk affecting them to provide returns. More or less investing in SIP is not too risky as equity. SIPs do provide finance support as do euities but there is a difference. SIP investors make payments to financial institutions and these institutions invest money in stabilised and growing company. Investing in equities is a personal choice and analysis or may be emotional attachment which fluctuates you gains. Both can be hod in electronis form.
Certain suggestions for SMART investors;-
a) When market is in tough condition do not withdraw from SIP, proceed with the same.
b)SIPs aremanaged by fund managers of financial institutions so they can be trusted. And do not invest in any such SIP which is below AA rated.
c) Equity investors please follow the rule of "Buy low and Sell high" as most of us do just the opposite. Do not panic on the crash of markets.
d) Equity investors invest in Pharmacy sectors, FMCG products and IT sector as they are booming ones.
e) While investing in equities keep a close track on company's progress as certain factors like change of chairman, scandals can affect share prices.
f) From the income tax view, hold your investment for minimum 1 year as returns on it are accounted as Long Term Capital Gains with 10% tax on gains of other investment and no tax for equity gains and bonus shares except for they are sold. If you hold investments for short term i.e.,less than 1 year then you will be subject to 20% tax on investment gains.
g) If you are paying high tax then invest in tax-saving instrument and if not then go for high returns investments.
Investors please check before you invest.