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Systematic Investment

A number of funds invest in company stock or equity shares in order to generate returns for the people investing in them. These investments are considered to carry a much higher risk than investing in other, more secure long-term avenues. The advantage they provide is that their returns usually prove to be at a much higher rate. To alleviate this risk most funds diversify their investments in various different equities and securities. Equity Linked Saving Schemes or ELSS is an ideal example for these types of diversified funds.

One of the safest ways of investing mutual funds is through systematic investment plans. Before investing in these plans it is important to decide on which scheme you wish to invest in and the amount of money you have to invest as well as the time frame for which you can invest. Once you are clear on these points you can approach a mutual fund distributor or a fund house in order to submit your relevant documents. There is also an online application method that is quicker. Your first payment for these funds can be made on any day of the month but remaining payments for the duration of the scheme have to be made on mutually decided date.

The attraction of these SIP's is that they follow the principle of rupee cost averaging. The way this works is that if you, for example invest Rs. 1000 in the first month, and the value for a single unit is Rs. 10 then you will receive 100 units. However in subsequent months, even if the price per unit falls, it works to your advantage because you are investing the same amount of money, therefore you will be able to purchase more units. SIP's are also a tax saving mutual fund because as long as you keep your money invested for over a year, any gains you earn are considered to be long-term capital gains and are therefore not liable to any taxation.

Mutual fund taxes do exist but are mainly for short plans that operate on the FIFO (first-in-first-out) principle. These taxes exist because the gains made in the short plan are not considered for exemption and come with at a flat rate of 15 percent. From an SIP point of view every installment is looked at as a separate investment and must be held for a year in order to come under the non-taxable, long-term gain bracket.

Mutual funds provide people with an excellent way to generate non-taxable income that they can either re-invest or use to purchase other assets. However, before investing it is always advisable to get an expert opinion in order to ensure that you find the right plan to suit your own personal investment goals.




Regular investing in MF schemes reached a new milestone, with SIP accounts crossing 4 crore and SIP AUM reaching an all-time high of Rs 483,964 crore
Fri, 09 Jul 2021 12:12:17 +0530


Investors have put in bids for 74.15 crore equity shares against offer size of 56.85 lakh equity shares, the subscription data available on exchanges showed.
Fri, 30 Jul 2021 11:36:54 +0530


Exxaro Tiles IPO: The company will utilise the net proceeds from fresh issue for repaying debt (Rs 50 crore), and working capital requirements (Rs 45 crore).
Fri, 30 Jul 2021 08:32:08 +0530


Devyani International IPO: Investors seem to be more excited about the issue, especially after the great success of IPOs of Zomato and Barbeque Nation Hospitality.
Fri, 30 Jul 2021 08:18:34 +0530


The net proceeds from its fresh issue will be utilised for repaying of debt (Rs 50 crore), and working capital requirements (Rs 45 crore).
Thu, 29 Jul 2021 18:15:56 +0530


Tatva Chintan traded with volumes of 78.60 lakh equity shares on the NSE and 8.99 lakh shares on the BSE
Thu, 29 Jul 2021 17:43:36 +0530


Tatva Chintan Pharma Chem IPo shares gained more than 100 percent in one of the strongest listings in 2021. GR Infraprojects rallied 108.7 percent and Indigo Paints climbed 109.31 percent on listing day
Thu, 29 Jul 2021 12:54:45 +0530


Rolex Rings IPO has, so far, received bids for 2.87 crore equity shares against an initial public offering size of 56.85 lakh equity shares
Thu, 29 Jul 2021 11:53:10 +0530


Glenmark Life is planning to raise Rs 1,513.6 crore through its IPO, which comprises a fresh issue for Rs 1,060 crore and an offer for sale of 63 lakh equity shares by Glenmark Pharma
Thu, 29 Jul 2021 11:29:06 +0530


Tatva Chintan IPO was subscribed 180.35 times. The specialty chemical company will utilise net proceeds from its fresh issue to expand its manufacturing facility in Dahej and upgrade the RD facility in Vadodara
Thu, 29 Jul 2021 10:00:23 +0530


Windlas Biotech IPO: Promoter Vimla Windlass will sell 11.36 lakh equity shares, and investor Tano India Private Equity Fund II will offload its entire stake of 40,06,067 equity shares (or 22 percent of pre-offer paid up equity) via offer for sale.
Thu, 29 Jul 2021 08:10:42 +0530


The company will separately announce price band and lot size for its IPO in coming few days. The issue will close on August 6.
Wed, 28 Jul 2021 18:55:01 +0530


The price band for the offer could be disclosed separately by the company in coming days. The issue will close on August 6.
Wed, 28 Jul 2021 13:12:35 +0530


Arihant Capital has come out with its report on Rolex Rings. The research firm has recommended to #39;#39;Subscribe#39;#39; the ipo in its research report as on July 27, 2021.
Wed, 28 Jul 2021 12:29:56 +0530


KR Choksey has come out with its report on Rolex Rings. The research firm has recommended to #39;#39;Subscribe#39;#39; the ipo in its research report as on July 28, 2021.
Wed, 28 Jul 2021 12:23:59 +0530


Considering the business growth outlook and almost stable operating margins, Choice Broking assigned a #39;subscribe#39; rating to the issue.
Wed, 28 Jul 2021 11:42:58 +0530

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