🚂 Current Fix Deposit Rates 🌞 SBI - General Citizen 3% to 7.10% Senior Citizen - 3.60% to 7.60% 🌞 HDFC - General - 3.00% to 7.40% Senior Citizen - 3.50% to 7.90% 🌞 ICICI - General - 3% to 7.10% Senior Citizen - 3.50% to 7.60% 🌞 PNB - General - 3.50% to 7.25% Senior Citizen - 4% to 7.75% 🌞 Kotak Mahindra - General - 2.75% to 7.20% Senior Citizen - 3.25% to 7.70% 🌞 Axis - General - 3.50% to 7.10% Senior Citizen - 3.50% to 7.85% 🌞 Bank of Baroda - General - 3% to 7.25% Senior Citizen - 3.50% to 7.55% 🚂 Current Recurring Deposit Rates 🌞 SBI - General 4.40% to 5.50% Senior Citizen 4.90% to 6.20% 🌞 ICICI - General 3.50% to 5.50% Senior Citizen 4% to 6.30% 🌞 HDFC - General 4.40% to 5.50% Senior Citizen 4.90% to 6.25% 🌞 KOTAK - General 4.30% to 5.20% Senior Citizen 4.80% to 5.70% 🌞 AXIS - General 4.40% to 5.75% Senior Citizen 4.65% to 6.50% 🌞 IDBI - General 7% to 7.15% Senior Citizen 7.50% to 7.65% ☁️ National Pension Scheme - 9% to 12% pa ☁️ Employees Provident Fund - 8.15% pa ☁️ Public Provident Fund - 7.1% pa Systematic Investment Plan (SIP)

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Systematic Investment Plan (SIP)

 

Systematic Investment Plan (SIP) is process to investing money in systematic and different Mutual Funds available in the market.  A systematic investment allows investors to invest regularly or lum-sum amount into selected mutual funds.  This system is created to help investors to averaging and compounding.  Systematic investment plan is a vehicle offered by mutual funds to those investors are looking for long term investment with having patience and working for his/her financial goal strategically.  By investing in SIP regularly you can achieve your financial goal, by long term investments can give you a better and healthy amount, it gives you a advantage of market fluctuations over the time.  But one can consider their investment goals and risk tolerance before starting the investment in a SIP. 

Example:

Mr. Mahindra, a 25 year old banking executive decided to invest in mutual funds to achieve his financial aim and started investing in different SIP’S.

1. Right Fund:

Mahindra searching and researching different mutual funds, he checked all their current and past performances, studied them carefully and selected a diversified equity fund which as sufficient track records of consistent generating a good returns over the long term.

2. Activation the SIP:

After all the necessary calculation and research, Mahindra decides to invest INR 5000 pm in the selected mutual fund.  He provides all his bank details and sets automated process i.e., monthly ECS, so that it will will be deduct INR 5000 automatically from his bank account.

3. Allocation:

INR 5000 started to be deducted from Mahindra’s bank account every month, the amount goes to the corporate of the particular mutual fund and they will purchase mutual fund’s in the basis of Net Asset Value (NAV) for Mahindra.

4. Market Fluctuations:

The Net Assets Value of particular mutual funds always be fluctuate and depends upon the securities performances.  Market is always volatile, when it is performing good, the NAV may increase and vice versa.

5. Cost Averaging: 

Since Mahindra invests a fixed amount every months, the units are coming more when the NAV is lower and if the NAV is higher the units coming lesser.  Such type of scenario helps to average all the time.

6. Long Term Benefits:

Long term investments are good in all the scenario, it is giving potential growth of investments and benefit of compounding.  Even the market is volatile or ups and downs his regular investments help to grow.

 7. Flexibility:

Systematic investment plan offer flexibility like Mahindra can increase or decrease his monthly investment as his goals or financial aim.

By doing such strategy for systematic investment plan allowing build a diversified investment portfolio and it help him to achieve his financial goal in long run.

Following are the some mutual funds performances, in which you can start your investments by taking an advice from your financial expert.  To calculate the SIP returns, you can use finlifesecure calculator, by calculating your monthly investment, you come to know approximately how much amount you will get.

Mutual Funds

5-Year Returns

Tata Digital India Fund – Growth

22.73%

ICICI Prudential Technology Fund – Growth 

21.95%

SBI Technology Opportunities Fund – Growth

21.56%

Aditya Birla Sun Life Digital India Fund – Growth

21.41%

PGIM India Midcap Opportunities Fund – Growth

18.32%

Kotak Small Cap Fund – Growth

16.33%

Nippon India Small Cap Fund – Growth 

16.30%

SBI Contra Fund – -Growth 

15.35%

HDFC Small Cap Fund – Growth 

13.16%

HSBC Small Cap Fund– Growth 

12.70%

Type of Systematic Investment Plan:

  1. Top-Up SIP:  In Top-Up Systematic investment plan, anytime you can change investment amount or installment in fixed amount.  For example, if you are investing INR 500 through top-up plan every month, through this option you can increase your investment to INR 1000 or even more.  This top-up option will give to contribute more or as per your present financial capacity towards your Financial goal.

 

  1. Flexible SIP:  Flexible option is means, if you are investing a fixed amount and for the some reason the same amount is not possible to you to investment every month, In this case, you can invest through flexible systematic investment plan in that you can alter your monthly investments according to your need.  This is a suitable option for shopkeeper or those are not earning fixed amount every month.

 

  1. Enduring SIP:  Investors are normally invested for a fixed period of time in a mutual fund like six months, three years, five years or more, but if you don’t wants to sets the end date ? this is possible in enduring sip option in which you can continually investing in mutual fund as long as you can and whenever you want you can redeem according to your need or requirement.

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