Till now the fund industry has not focused much on booster SIPs. But now it is slowly being started. Recently, the fund industry launched the first Booster SIP. If its returns are seen as the basis of investment in 2019, then investors have benefited from the rate of 21.4% compound interest annually. Whereas normal SIP has gained 18.3% in the same period.
Despite the volatility in the stock market, equity fund schemes of mutual funds made a profit of more than 18 thousand crores last month. This shows that investors are relying on these schemes for safer and better returns. Ajit Singh’s report gives the math of investing in equity funds like Value and Booster SIP-
A fixed amount is deposited every month like installment
Chintan Hariya, Head of Product & Strategy, ICICI Prudential Mutual Fund, says that Systematic Investment Plans (SIPs) are one of the most popular investments in the mutual fund industry. In this, a fixed amount is deposited every month as loan installment. But now Booster SIP is also coming. It gives higher returns than normal SIP. Through this feature, when the market becomes expensive, a small amount of the principal installment is invested.
Conversely, when valuations become cheaper, it pushes the investment higher. For example, if the principal installment is Rs 10,000 then it invests anywhere between Rs 100 to Rs 1 lakh depending on the market conditions. Booster SIP leverages a cost averaging cost of Rs. It is based on Inhouse Equity Valuation Index.
Selection of shares
- However, despite all this, neither there has been any change in the management nor has there been any fundamental change in the company.
- There can be many reasons for the drop in price. There may be a sharp decline in the market and there may also be a cyclical change in it.
- However, despite all this, neither there has been any change in the management nor has there been any fundamental change in the company.
Big profit for the investor
The disciplinary approach of regular investing is of great benefit to investors as they do not have to actively track the market.
Booster SIP invests in equity and debt. This facility helps the investors to make the most out of the volatile market conditions. It also helps those who are ready to invest for a long period of time.
Start of Booster SIP
Till now the fund industry has not focused much on booster SIPs. But now it is slowly being started. Recently, the fund industry has launched the first Booster SIP.
If its returns are seen as the basis of investment in 2019, then investors have benefited from the rate of 21.4% compound interest annually. Whereas normal SIP has gained 18.3% in the same period.
Where investment is safe, invest money there
Experts say that the expectation of a rise in the market at present is less in the near term. In such a situation of volatility, investors should go for Booster SIP or Value Discovery Fund route.
There is a fall in the markets around the world. The trick is to invest money where the investment is safe and gives average returns.
Value Discovery Funds invest when they get an opportunity to invest at a discount, which is currently available in the markets.
Keep every detail of the company
A common investor must keep an eye on every fine detail about the company. Value Discovery Fund is a better fund for achieving long term financial goals as the strategy that this fund follows for investing in equities is unique. This means that this fund buys any stock when its value has come down to a very low level.
There is a possibility of getting higher returns than this. You can get better returns by following this fund strategy. -Atulesh Jain, Promoter, WCFA Finserve
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