Are SIP mutual funds safe investments in the long-term?

Are SIP mutual funds safe investments in the long-term?

Mutual funds are a safe investment if you understand them. Investors should not be worried about the short-term fluctuation in returns while investing in equity funds. You should choose the right mutual fund, which is in sync with your investment goals and invest with a long-term horizon.

Is SIP is a good investment strategy because?

SIPs allow investors to save regularly with a smaller amount of money while benefiting from the long-term advantages of dollar-cost averaging (DCA). By using a DCA strategy, an investor buys an investment using periodic equal transfers of funds to build wealth or a portfolio over time slowly.

Which is the good investment sip or MF?

SIP can be considered as a better route to achieve the financial plan and investment goals. Mutual funds provide an investor with an option either to reinvest the earnings or returns. If instead of withdrawing an investor reinvests in the same plan he can enjoy the benefits of power of compounding.

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What are the pros and cons of SIP?

Gaurav Chakraborty

SIP
Pros Small amount; Regular basis Rupee cost averaging Compounding benefit Better returns over long-term Develop investing habit Simple, Easy to monitor
Cons SIP averages out short-term fluctuation

Which is the best SIP for long term?

Large-Cap Schemes

Scheme Name 5-Year Monthly SIP 10-Year Monthly SIP
ICICI Pru Top 100 Fund (G) Rs.9,41,591 16.02\%
Quantum LT Equity Fund (G) – Direct Plan Rs.9,15,695 16.86\%
Reliance Growth Fund (G) Rs.10,75,057 18.05\%
SBI BlueChip Fund – Reg (G) Rs.9,55,955 16.86\%

How SIP is beneficial for long term?

You Do Not Need to Worry About Timing the Market At times when the markets are high, your monthly SIP buys you less number of units of a mutual fund. When the markets are low, the same monthly SIP amount buys you more units. Therefore in the long term, you do not pay very high prices for any unit of a mutual fund.

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