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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.




All time high inflows suggest that the third wave has not dampened investors’ enthusiasm for equity mutual funds
Tue, 11 Jan 2022 11:58:58 +0530


All time high inflows suggest that the third wave has not dampened investors’ enthusiasm for equity mutual funds
Tue, 11 Jan 2022 11:58:58 +0530


The dip in the valuation of the AMC stocks is in contrast to the favourable industry trends and presents an investment opportunity
Mon, 27 Dec 2021 10:46:13 +0530


AGS Transact clocked lower profit of Rs 54.79 crore in FY21, down from Rs 83.01 crore a year back, and its revenue declined marginally to Rs 1,758.94 crore from Rs 1,800.44 crore
Mon, 17 Jan 2022 14:41:25 +0530


AGS Transact clocked lower profit of Rs 54.79 crore in FY21, down from Rs 83.01 crore a year back, and its revenue declined marginally to Rs 1,758.94 crore from Rs 1,800.44 crore
Mon, 17 Jan 2022 14:41:25 +0530


AGS Transact clocked lower profit of Rs 54.79 crore in FY21, down from Rs 83.01 crore a year back, and its revenue declined marginally to Rs 1,758.94 crore from Rs 1,800.44 crore
Mon, 17 Jan 2022 14:41:25 +0530


AGS Transact Tech IPO | The issue will entirely be an offer for sale wherein promoter Ravi B Goyal will sell shares worth up to Rs 677.58 crore
Thu, 13 Jan 2022 13:20:03 +0530


Over 23.5 million shares of the manufacturer of active pharmaceutical ingredients changed hands on the NSE
Tue, 28 Dec 2021 17:41:44 +0530


Supriya Lifescience IPO: The stock saw a strong debut today, backed by solid subscription numbers, and healthy financials with robust return ratios.
Tue, 28 Dec 2021 10:00:05 +0530


HP Adhesives traded with volumes of 7.31 lakh equity shares on the NSE, and 1.95 lakh shares on the BSE
Mon, 27 Dec 2021 17:30:13 +0530


HP Adhesives | The company mopped up Rs 126 crore through its maiden public offer that saw strong demand from investors
Mon, 27 Dec 2021 10:00:35 +0530


Data Patterns IPO |It is the third company in the field of defence equipment to get listed on the bourses in 2021, after MTAR Technologies in September and Paras Defence Space Technologies in March.
Fri, 24 Dec 2021 17:03:34 +0530


Data Patterns IPO | Healthy financials with sound orderbook, huge growth potential amid Make in India opportunity boosted investors#39; sentiment.
Fri, 24 Dec 2021 10:00:05 +0530


Medplus Health Services traded with volume of 1.84 crore equity shares on the NSE, and 11.99 lakh equity shares on the BSE
Thu, 23 Dec 2021 17:23:59 +0530


The stock opened at Rs 1,015 on the BSE, and at Rs 1,040 on the National Stock Exchange, higher than the issue price of Rs 796 per share
Thu, 23 Dec 2021 13:02:08 +0530


CMS Info Systems IPO | The IPO of leading cash management company has managed to get good response especially from retail and qualified institutional investors on its last day of subscription.
Thu, 23 Dec 2021 10:23:12 +0530


Medplus Health Services IPO | The pharmacy retailer has mobilised Rs 1,398 crore from its public issue, which includes a fresh issue of Rs 600 crore that will be used for working capital requirements of its subsidiary Optival Health Solutions.
Thu, 23 Dec 2021 10:00:31 +0530


Medplus Health Services IPO | The pharmacy retailer has mobilised Rs 1,398 crore from its public issue, which includes a fresh issue of Rs 600 crore that will be used for working capital requirements of its subsidiary Optival Health Solutions.
Thu, 23 Dec 2021 10:00:31 +0530

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