Mutual funds are investment havens which pool savings from several investors under a particular scheme managed by an asset management company (AMC). The pooled money is then invested in securities like equity shares, bonds according to the scheme’s investment objective. The fund manager, appointed by the AMC, manages the investment portfolio as per the market movements to create wealth for investors.

Why should you invest in Mutual Funds?

Investing in mutual funds is a simple process. It is a paperless process where you can monitor the market and make investments as per your requirement.

Low initial investment
You can have a diversified mutual fund portfolio in hand with investments as low as Rs. 1000. You also have the option to invest either as a lump sum or a systematic investment plan (SIP). However, when compared to lump-sum investments, a SIP lowers the overall cost of investment while unleashing the power of compounding.

Professional fund management
In mutual fund investing, your money is managed by a professional fund manager who is backed by a team of researchers. The fund manager formulates the investment strategy for your asset allocation.

 SIP 10% 12% 15% 15% 15%
500 21,846 42,691 1,40,096 3,28,305 7,06,861
1,000 43,692 85,382 2,80,191 6,56,610 14,13,721
2,000 87,384 1,70,765 5,60,383 13,13,219 28,27,443
3,000 1,31,076 2,56,147 8,40,574 19,69,829 42,41,164
4,000 1,74,768 3,41,529 11,20,765 26,26,439 56,54,886
5,000 2,18,460 4,26,911 14,00,957 32,83,048 70,68,607
6,000 2,62,152 5,12,294 16,81,148 39,39,658 84,82,329
7,000 3,05,844 5,97,676 19,61,339 45,96,268 98,96,050
8,000 3,49,536 6,83,058 22,41,530 52,52,877 1,13,09,772
9,000 3,93,228 7,68,440 25,21,722 59,09,487 1,27,23,493
10,000 4,36,920 8,53,823 28,01,913 65,66,097 1,41,37,214

Lets assume that Rahul has done SIP of Rs 2000 monthly for 5 years and the selected mutual fund scheme is giving return of 12% (apprx) every year. His total investment was Rs 120000 but after 5 years he will get Rs 1,70,765. Which means Rs 50765 extra he is earning as interest through money invested.

Frequently Asked Questions

Q-Is SIP a Mutual Fund?
SIP is a style of investment in mutual funds. It is a vehicle to invest periodically in a fund/scheme of your choice.
Q-what is power of compounding?
Power of Compounding. Compounding refers to the reinvestment of earnings at the same rate of return to constantly grow the principal amount, year after year.
Q-what is Rupee cost averaging?
It is an approach in which you invest a fixed amount of money at regular intervals. This in turn ensures that you buy more shares of an investment when prices are low and less when they are high.
Q-Why you should do SIP?
You should do SIP for a regular savings and achieve short term as well as long term goals.
Q-What are short term and long term goals?
Short term goals are like – Car Purchase , Foreign Tour, etc Long term goals like – children marriage, children education, etc.
Q-When is the best time to invest in SIP?
There is nothing like a good timing when it comes to investments. It’s more about what you need from that investment. In an SIP, you can automate your transfers, and be hassle-free about the date in a particular month.
Q- Can I apply SIP without PAN CARD ?
Yes with us you can apply without PAN but documentation will be different .
Q- How I can apply for SIP?
Get the forms download, fill it and attach your documents like Aadhar , Pan card, Photo and send to nearby Net Paisa associates or send directly to us.
Q- How I can make Payment?
You can make payment by cheque and online.

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