Systematic Investment Plans (SIP)
Buy low sell high, just four words sum up a winning strategy for the stock
markets. But timing the market is not everyone’s cup of tea. The inability to time
the market on a regular basis can leave an investor high and dry. However, the good
news is, that time in the market has historically shown more consistent success than
timing the market.
Though great returns from
the market may not always be possible, stable and consistent returns are. There are
various strategies, which can be followed to achieve this. One of the easiest is to
invest in Systematic Investment Plans (SIPs) of mutual funds.
Though an SIP does not
assure a profit or protect against a loss. Overall, systematic investment programs have
been recognized historically as an excellent method for developing what could be a
substantial investment, i.e., wealth accumulation.
For a graphic
representation of how an SIP can work for you Click Here…
SIP returns in some Diversified Funds
over one and three years |
|
Rs 1000 invested every month for
one year |
Rs 1000 invested every month
for three years |
| Scheme
|
Units Accumulated |
NAV 31-Aug-04 |
Capital Appreciaton |
Returns (%) |
|
Units Accumulated |
NAV 31-Aug-04 |
Capital Appreciation |
Returns (%)*
|
Alliance Equity Fund |
236 |
59 |
13907 |
15.89 |
|
1197 |
59 |
70538 |
31.98 |
Birla Advantage Fund |
263 |
48 |
12722 |
6.02 |
|
1255 |
48 |
60637 |
22.81 |
DSP Merrill Lynch Equity Fund |
634 |
20 |
12974 |
8.12 |
|
3281 |
20 |
67196 |
28.89 |
Franklin India Prima Plus |
267 |
51 |
13498 |
12.48 |
|
1350 |
51 |
68203 |
29.82 |
HDFC Equity Fund |
255 |
52 |
13143 |
9.52 |
|
1395 |
52 |
71971 |
33.31 |
Kotak 30 |
546 |
25 |
13632 |
13.60 |
|
- |
- |
- |
- |
Principal Growth Fund |
672 |
21 |
14024 |
16.86 |
|
3227 |
21 |
67374 |
29.05 |
Reliance Growth Fund |
176 |
84 |
14775 |
23.12 |
|
1111 |
84 |
93344 |
53.10 |
Sundaram Growth Fund |
504 |
26 |
13209 |
10.08 |
|
- |
- |
- |
- |
Tata Pure Equity Fund |
584 |
23 |
13479 |
12.32 |
|
3094 |
23 |
71482 |
32.85 |
SIP In Sensex |
2 |
5192 |
12046 |
(0.38) |
|
10 |
5192 |
53011 |
15.75 |
* annualised
(Mutual Fund investment are
subject to market risk, please read offer document before investment) |
To invest in Systematic Investment plans Click here. |
|