HOME         WEBSITE         SUBSCRIBE           E-GREETINGS   
                               

Wednesday, February 28, 2018

3 reasons why you should opt for Monthly SIPs over Daily SIPs

Dear Readers,


As per analysis done over the five-year period starting from March 1, 2013, Master Mind Financial Advisory compared the Daily SIP returns with the Monthly SIP returns of 147 equity-oriented schemes, in terms of returns, there is hardly much difference between a Monthly SIP and Daily SIP. The quantum variance in returns will change over different market cycles. Hence, you need to choose an option that is simple and convenient.
Here's is where Monthly SIPs score over Daily SIPs.

1.       Convenience – Over a five-year period, there will be over 1,200 Daily SIP transactions. This compares to just 60 transactions through a Monthly SIP. Imagine viewing your bank statement with daily entries on entries because of mutual fund investments through a Daily SIP. If you invest in multiple schemes through Daily SIPs, the number of entries multiplies.

You certainly do not want important bank transactions to get lost in sea of SIP entries. The same goes for your mutual fund transaction statement. Imagine the inconvenience of reading through the statements in order to identify non-SIP transactions.

2.      Better tracking – With a reduced number of entries under Monthly SIP, you will be able to track your investments better. Imagine comparing your bank statement to your mutual fund statement to check if all transactions were successful. This would be easier to track if you invested through the Monthly SIP route. Also, when it comes to calculating the returns, you would be able to do it faster with investment through a Monthly SIP.

3.    Ability to plan better – If you are salaried, you get a monthly salary credit. Thus, you can smoothly plan what proportion of your salary can be invested every month. And this can be effortlessly being converted into a mutual fund investment through a monthly SIP. Many opt for a Monthly SIP date that is a few days after their salary credit. Unplanned expenditures towards the end of the month may lead to a lower bank balance; hence, nobody wishes to take the risk of the SIP installment getting returned. This can get a little tricky with a Daily SIP. Hence, with a Monthly SIP, you should be able to plan your finances better.

In times of volatility, a SIP would undoubtedly be a prudent route as compared to investing your corpus as a lumpsum. As seen in our analysis above, a Monthly SIP will be a prudent choice.

When investing in equity, it is important to keep a long-term investment horizon of five to seven years or more, even if you are investing via a SIP. The returns may be a few percentage points lower as compared to a lumpsum investment, but it will still be sufficient to meet your financial goals.

It is important to note that there are several benefits of investing via a SIP as a regular form of investment.

The top three reasons why you should invest in mutual funds through SIPs:

1.       A hassle-free investment route
2.      Deals with market volatility
3.      Devoid of behavioral biases

Clearly, SIP-ping into mutual funds, with all these benefits and much more, will help achieve your financial goals.

 Regards,

 Varun Vaid & Master Mind Financial Advisory Team

+91 – 9814612907; +91 – 0172 – 4623907

Twitter: @vaid_varun

Email: director@mmfa.in; operations@mmfa.in
www.vaidvarun.blogspot.in
www.facebook.com/MasterMindFinancialAdvisory
www.indiamart.com/mastermind-financial
Posted by

Blog Archive

____________________________________________________________________________________________

Disclaimer - All investments in Mutual Funds and securities are subject to market risks and uncertainty of dividend distributions and the NAV of schemes may go up or down depending upon factors and forces affecting securities markets generally. The past performance of the schemes is not necessarily indicative of the future performance and may not necessarily provide a basis for comparison with other investments. Investors are advised to go through the respective offer documents before making any investment decisions. Prospective client(s) are advised to go through all comparable products in offer before taking any investment decisions. Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the fund will be achieved. Information gathered & material used in this document is believed to be from reliable sources. Decisions based on the information provided on this newsletter/document are for your own account and risk.


In the preparation of the material contained in this document, Varun Vaid has used information that is publicly available, including information developed in-house. Some of the material used in the document may have been obtained from members/persons other than the Varun Vaid and which may have been made available to Varun Vaid. Information gathered & material used in this document is believed to be from reliable sources. Varun Vaid however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Varun Vaid does not in any way through this material solicit any offer for purchase, sale or any financial transaction/commodities/products of any financial instrument dealt in this material. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice.


Varun Vaid, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. Any person subscribing to or investigating in any product/financial instruments should do soon the basis of and after verifying the terms attached to such product/financial instrument. Financial products and instruments are subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. Please note that past performance of the financial products and instruments does not necessarily indicate the future prospects and performance there of. Such past performance may or may not be sustained in future. Varun Vaid, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation in the financial instruments/products/commodities discussed here in or act as advisor or lender / borrower in respect of such securities/financial instruments/products/commodities or have other potential conflict of interest with respect to any recommendation and related information and opinions. The said person may have acted upon and/or in a manner contradictory with the information contained here. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of Varun Vaid. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else.


Varun Vaid also does not take any responsibility for the contents of the advertisements published. Readers are advised to verify the contents on their own before acting there upon.


Published Credits goes to following sources & all the mentioned sources as footer below the published material- Bloomberg, Valueresearch Online, Capital Market, Navindia, Franklin Templeton, Kitco, SBI AMC, LIC AMC, JM Financial AMC, HDFC AMC, The Hindu, Business Line, Personal FN, Economic Times, Reuters, Outlook Money, Business Standard, Times of India etc.