If we talk about at the differences and similarities between SIP and MUTUAL FUND and which one is better option for investment then we deeply analysis and understand every corner of SIP and Mutual Fund ! Which is better? option.
We can invest in SIP or Mutual Fund through Demat account and can do it by visiting our banking branch and can also operate SIP and Mutual Fund by ourselves through banking applications or Net Banking. there are many varieties of SIPs and mutual funds. Every bank has its own SIP and mutual fund portal which is operated by a professional funds manager.
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SIP and Mutual Fund ! Which is better?
SIP and Mutual Fund ! Which is better?
* What is SIP ?
SIP (Systematic Investment Plan) is a method of investing in mutual fund on the basis of a fixed amount and it is done on a regular chain cycle ,we can invest it monthly or as per our convenience. Mostly SIP is suitable for long term investment plan which is matured by period of years for long term goal with their systematic and regular investment plans.
We cannot call SIP a safe investment because the fluctuations in the market or the inflation that occurs effects the SIP a lot and this effects both its profit and loss. But if we compared SIP with banks Fixed Deposit (F.D) then SIP is best and it has lot of potential gives higher returns the Banks Fixed Deposit.
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SIP and Mutual Fund ! Which is better?
* What is MUTUAL FUND ?
The investment which is done by combining different stocks and bonds of equities with huge amount is invested by the investors in a securities ,is called mutual fund and it is run by highly professional funds managers. Before investing in a mutual fund , it is very important to get detailed information about it because many mutual funds have a lock-in-period which is may be 2 years ore 3 years and we cannot withdraw our funds or money from that mutual fund . Therefore it is very important to know about mutual funds carefully before investment. There are four types of mutual funds.
- Equity Funds
- Debt Funds
- Money Market Funds
- Hybrids Funds
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SIP and Mutual Fund ! Which is better?
SIP and Mutual Fund ! Which is better?
Equity Funds : By equity fund we can understand that this is mutual funds primarily stocks investment area which is done by lump sum ,SIP, mutual fund with the market value price or NAV (Net Asset Value) and manage the portfolio .By these we know that it is an equity fund.
Debt Funds : It is a mutual fund scheme that invest in fixed income instruments like Government Bonds, corporates etc, is called debt funds.
Money Market Funds : Many such companies which have high returns in a year and have huge benefits are called Money Market Funds.
Hybrids Funds : Hybrids Funds is type of mutual funds scheme that invests in more then one asset class that is mixed of investment in both equity and debt.
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SIP and Mutual Fund ! Which is better?
Differences and Similarities Between SIP and Mutual Fund
If we talk about the differences between SIP and Mutual fund ,then there is no question of similarities or differences between the two, because the investment in a SIP is done by mutual fund ,Mutual fund is a types of schemes that invest in all in stock market era to bond which is operated by securities.
We can also operate SIP through a Demat account. SIP can be created by ourselves by creating a basket, whereas mutual funds are operated by highly professional fund managers.
SIP and Mutual Fund ! Which is better?
FAQS :
- IS SIP called mutual fund ?
- SIP invest into a mutual funds but both are functionally different way of investments.
- What is better for investment SIP or Mutual fund ?
- Both are invest into a stock market and if stock market suffer a inflation or buying zone period then both are performed where the market is behave.
- Can i withdraw SIP any time ?
- Yes ! you can withdraw a SIP any time .