123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Find The Best Fund To Invest In Sip Now

By Author: Jignesh Shah
Total Articles: 7

Before you invest in mutual funds through SIP you should consider a few points. You should first identify your goals. You should invest to reach your goals. Investing with a goal in mind keeps you focusses to your investments. You should decide your risk appetite. You should not invest without knowing your risk tolerance. You should decide for how long you want to invest.

You have to find the funds that meet your requirements. The objective of the funds you invest in should match your investment objectives. You should do proper research before investing. The best fund to invest in SIP are those that help you reach your goals, fit your risk appetite and suit your requirements.

You should ideally invest in 3 - 5 funds. You should also diversify your investments to reduce risk. You can diversify your investments across equity, debt and gold. You have to decide how much to invest across each asset class. The risk in one asset can make up for the loss in another.

Best funds to invest in SIP based on goal based investing

Depending on your goal you select the mutual fund to invest in. If you are investing for 0 - 3 years than it is called short term investment. The best funds to invest for short term are liquid and debt funds. If you are investing for 3 - 5 years then it is called mid term investments. The best funds to invest for mid term are hybrid funds. If you are investing for 5+ years then it is called long term investments. The funds best suited for long term investments are equity funds.

You should not forget the effect of inflation. You should check the real returns of the funds before investing.

Why invest through SIP?

There are various reasons as to why you should invest through SIP in mutual funds. They are as follows:

It is convenient as it is an automated process.
It allows you to invest in a disciplined way every month.
It supports the power of compounding. In compounding the initial amount earns interest and the previously earned interest also earns interest. The longer you stay invested more the benefits of compounding.
As you invest a fixed sum you can buy more units when the market is low and vice versa. This brings down the average cost of acquisition of units.
The author is a blogger and likes to write on the various topics on mutual funds. Here the author has briefly described how to find the best fund to invest in SIP.

Total Views: 68Word Count: 420See All articles From Author

Investing / Finance Articles

1. Tips For Credit Repair Services
Author: Martin King

2. 5 Benefits Of Hiring A Business Advisor
Author: Mohit Singh

3. What All Things One Needs To Know Before Choosing A Residential Mortgage Lender In Ontario?
Author: Steve Nicol

4. Think Twice Before Getting Financial Advice From Your Bank
Author: Simon

5. 5 Things To Know Before Applying For A Forex Card In India
Author: neha sharma

6. 5 Reasons Why You Need An Nri Bank Account
Author: neha sharma

7. What Is An Nro Account? It’s Features And Benefits
Author: neha sharma

8. 5 Innovative Mobile Payment Apps
Author: neha sharma

9. Personal Loan: It’s Benefits And Types
Author: neha sharma

10. Top 5 Travel Insurance Policies In India
Author: neha sharma

11. Electronic Fund Transfer: Its Types And Benefits
Author: neha sharma

12. How Does Car Loan Emi Calculator Work?
Author: neha sharma

13. What Is Nre Account? Its Features And Benefits
Author: neha sharma

14. Bank Account And Its Types
Author: neha sharma

15. 7 Things To Know Before Getting A Car Loan
Author: neha sharma

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: