Mutual Funds are considered one of the best available investment options as they are cost-efficient, professionally managed and easy to invest in. Mutual Fund investments are ideal for those who want to grow their wealth over a longer period of time, avail of tax benefits and have income for their retirement.
SIP
You can invest in mutual funds in a staggered manner through a SIP (Systematic Investment Plan). Under SIPs, you invest a small amount regularly, say Rs 10,000 monthly, over twelve instalments. SIP is ideal if you don’t have a lump sum to invest.
It is a well known fact that it’s easier to achieve goals step by step than at one go. Similarly, an SIP allows you to invest small amounts at periodic intervals towards your financial goal. In other words, it is a vehicle that aims to offer a methodical system to buying your dream home, travelling abroad, or retiring with financial independence. So, begin the journey of turning your dreams into reality with a new SIP!
STP
A systematic Transfer Plan (STP) is a facility by which a pre-determined amount can be transferred from one scheme of mutual funds to another at pre-defined intervals.
SWP
SWP or systematic withdrawal plan is a mutual fund investment plan through which investors can withdraw fixed amounts at regular intervals, for example – monthly/ quarterly/ yearly, from the investment they have made in any mutual fund scheme.
Lum Sum
It is a one-time investment you make, say, Rs 1,00,000. If you have a substantial disposable amount in hand and a higher risk tolerance, you may opt for a lump-sum investment.
NFO
A new fund offer (NFO) is a first-time subscription offer for a new scheme launched by an asset management company. The fund house can launch an NFO around a theme or simply complete its product basket. Once the NFO is over, the fund will reopen for subscription again, and investors have the option to subscribe at the prevailing net asset value (NAV).
