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ALL YOU NEED IS Rs. 500 PER MONTH* TO CREATE WEALTH |
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06 May 2009 15:00 IST by Sunder
Welcome to the world of Mutual Funds:
Just as drops of water make an ocean, small but regular investments can go a long way in building wealth over time. This way you grow step by step. Its always prudent to invest with a long term horizon in mind. Small but regular investments go a long way in creating wealth over time.
Mutual Funds help you achieve just that. It is an investment technique where you deposit as little as Rs. 500 regularly every month into the mutual fund scheme at the then prevailing NAV ( Net Asset Value), subject to applicable load.
Systematic Investment Plan (SIP):
It gives you an option of entering the Mutual Fund market with monthly payments as small as Rs. 500. Besides, it also gives you a combination of 2 powerful investing strageties.
a) Compunding, where profits are reinvested instead of spending, giving you future returns on reinvested profits as well as original investments.
b) Rupee-Cost Averaging. It gets more units at lower NAV during periodic dips in the stock market, resulting in lower average unit cost and higer returns.
*Subject to a minimum investment as required by an AMC
In short, SIP gives you long-term returns without pinching your pocket.
Email : sunder.gopal@gmail.com
Risk Factors: Mutual Fund investments are subject to market risks. Please read the offer document of the scheme carefully before investing.
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Posted in: Personal Finance
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