INSUBCONTINENT EXCLUSIVE:
SIPs for SBI mutual fund save you from the hassle of timing the market.
To be able to make consistent
returns on your savings, the depositors can opt for the systematic investment plan (SIP) of SBI (State Bank of India) mutual fund that not
helps inculcate the habit of saving, but also enables your money to multiply manifold thanks to the power of compounding
To be able to save money, one only need to part with a tiny amount on a monthly basis
The money is deducted on a particular day of your choice, and with the power of compounding; the money keeps swelling as the time rolls on
It is advisable to stay invested for the longest period possible.The State Bank of India (SBI) Mutual fund, on its official website,
www.sbimf.com, explains the scheme of things in a very lucid and succinct way website.In case you choose to invest Rs 3,000 per month and
expect a rate of return of 10 percent
After 20 years of regular investments in the SBI mutual fund, you can expect to receive Rs 22.9 lakh
One must note that the total cost of investment is Rs 7.2 lakh
Similarly, if you continue the SIPs for another 10 years, which means 30 years, your investment will grow to become Rs 68.4 lakh, while the
the SBI mutual fund elaborates an illustration to explain as to how can one save (say) Rs 50,000 in a span of one year
an SBI SIP are as follows:A
Assess your risk profile.B
Set your desired instalment/ SIP amountC
Invest in a suitable scheme: SBI's Mega E-Auction Scheme: Bids For 1,000 Commercial, Residential PropertiesFollowing are the five
advantages of SBI (State Bank of India) SIPs:1
SIPs in SBI mutual fund spare you the hassle of timing the market
The biggest factor that determines the growth of money is the price you pay to buy securities
For this, one must time the market, which means buying at the dips to be able to sell the rallies
However, when you make investments through SIPs, you don't need to time the market anymore.2
You tend to get the benefit of compounding
This means your return keeps adding to the actual investment in the beginning, helping the overall return to increase further
When Rs 100 swells to Rs 120, the 10% return on the latter amount will turn out to be Rs 12 instead of Rs 10 earlier.3
You don't need to track your investments on a daily basis
When you make investments via SIPs into SBI mutual fund, you can rest assured
Since the mutual fund is managed by the professional money managers, you are not required to keep a tab on the investments on a regular
You can withdraw your investment in part or in full at any point of time.5
The commitment of money is totally determined by the investor
One can choose any amount say Rs 1,000, Rs 1,500 or Rs 2,000 or even higher or lower depending on the depositor's risk appetite and
availability of disposable income for the same.Recently, the State Bank of India (SBI) posted heavy losses to the tune of $1.1 billion in
