SIP: In the present age, people are aware enough. Not just awareness of one’s own health or family health. People are obsessed. About the future of children in the family. With their education system, this education or their specialty means money. In today’s age, education or the future depends on money. So it is necessary to save money. At present, the interest rate on bank deposits is very low. Bank by post office, interest rates are low everywhere. So now most people try to invest money in monthly installments.
Yes, it is quite profitable to deposit money in a monthly installment in a mutual fund instead of a bank or post office. You can deposit money in a mutual fund every month like a bank’s recurring deposit. These mutual funds are known as systematic investment plans or SIP projects. Currently, most people rely on this SIP. Mutual funds or SIP projects are increasing by 3 times every year.
Most of those who are doing government service are more interested in investing in this mutual fund. Because of their accumulation, interest rates on PFs are declining. On the other hand, there is a huge increase in deposits after the liquidation of banks and the demand for loans is much less than that. At present, there are very few banks that pay 7% interest. This is the case with the post office, not just the bank. Therefore, small depositors are more interested in mutual funds in the hope of getting higher returns.
Why invest in mutual funds?
Again, if you come to tax, you have to pay tax on interest received in the bank deposit, depending on the rate at which the depositor pays the highest income tax. That is why investing in shares or mutual funds from a tax perspective are much more profitable than deposits at the bank-post office.
The way SIP works is that you can get this plan every month. For example, suppose you went to the market today. But you have targeted that you will buy 500 rupee maize per month. Going to the market and found that the maize is Rs.8/ Kg. You got 62.5 kg of corn. This time you went to buy maize again next month and saw that today the maize is Rs.5/kg. Now you get 100 kg. The total deposited maize in your account in 2 months is 162.5 kg. Then next month it is found that the maize Rs.8/kg.
Now you see that you bought 8 rupees after 5 rupees. Your average monthly price is Rs.6.5/Kg. You bought 1000 rupees and you got 1300 rupees in two months
There are different types of SIPs. You can invest in mutual funds through various banks. In this case you can take the plan yourself at home or go to the bank manager.
The reason for the rise in popularity of SIP among small investors is that you can run a SIP account by logging in at only 500 rupees a month.
There are several types of mutual funds you can easily start your monthly savings online. Vanguard mutual funds Like most people. You can get SIP of Franklin Mutual Funds, SBI in India, axis bank, HDFC bank and other banks. But you can purchase sbi mutual fund. Best for you and the SBI blue chip is the best mutual fund.You can purchase blue chip sip from SBI online,Mutual Funds – Karur Vysya Bank.