| Become an RR Business Partner |
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It is not just another offer to
become a sub-broker. We
help you reach the top by
providing you with a strong
foundation of knowledge
based advice and state-of-art
technology support. Be our
Business Associate & enjoy a
broad range of products &
services, extensive training,
marketing & back office
support. |
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| Following are some of the key benefits of a SIP |
- Creates discipline in your investing activities: You are forced to direct some of your earning every month in a mutual fund of your choice. This could either be debited directly from your account or you could give post-dated cheques to the mutual fund.
- No need to second-guess the market: Stock market has a habit of fluctuating frequently without any warning, at least not to an individual investor. Though SIP an individual investor can initiate a wealth building system without worrying about market ups and down. For example, if you would have invested in Prudential ICICI Technology Fund during the dotcom and tech boom and subsequent slowdown in the sector following would have been the result:
Let’s say you invested Rs 1000 every month for five years from Mar 2000-Mar 2005. Following would be the result:
| Investment period |
Mar 2000 – Mar 2005 |
| Monthly investment |
Rs 1,000 |
| Total amount invested |
Rs 61,000 |
| Value of investment of Mar 7, 2005 |
Rs 1,09,315 |
| Return on investment |
23.87% |
NAV was Rs 10.88 per unit on March 13, 2000 and Rs 7.04 on March 7, 2005. ROI would have been much lower if the investment would have been made in one shot at the beginning of the period. (In a different scenario an opportunity could be missed as well due to a systematic structure of SIP)
- A number of mutual funds do not charge an entry load if you opt for a SIP. Entry load is a fee charged by the fund, a percentage of your investment.
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