ADVANTAGES OF INVESTING THROUGH SIP MODE

ADVANTAGES OF INVESTING THROUGH SIP MODE

1. Cost averaging per unit

2. Smooth ride over market fluctuations

3. Easy, convinient way to invest

4. Ensures regular saving habit

Now some of the Mutual Fund houses offer addditional benefit for investing through SIP mode. One of such benefits is Waiving of entry load. The normal charge of 2.25% (ie., Rs.225 per Rs.10,000/-) is not charged if one enters through SIP mode.

The other important Benefit is "Life insurance cover" proportinate to the amount invested per installment and the number of years selected. For those people liking ULIPS, this is an 'Ideal instrument' to get 'two in one' benefit, since normally there is about 1/10 th reduction in the cost of investing mutual funds compared to ULIPS.

Out of the modes of frequency for SIP, the monthly mode is far better than other modes. Auto Debit, ECS facilities make possible the easy & regulat investing of money in a Fund. But one should also ensure the amount on the indicated date otherwise nowadays a penalty is charged by the bankers for ECS or Autodebit dishonour.

RELAX

A MULLA STORY

One day Mulla Nasrudin visited a large department store to buy his wife some nylon hose. Inadvertently, he got caught in a mad rush at a counter where a bargain sale was going on. He soon found himself being pushed and stepped on by frantic women. He stood it as long as he could. Then with head lowered and elbows out, he plowed through the crowd. "You there!" said a woman. "Can't you act like a gentleman?" "NOT ANY MORE," said Nasrudin. "I HAVE BEEN ACTING LIKE A GENTLEMAN FOR AN HOUR. FROM NOW ON, I AM ACTING LIKE A LADY."

A SAYING

WE ARE NOT ABLE TO MEET THOSE WHOM WE WANT TO MEET, BUT HAPPEN TO MEET THOSE WHOM WE NEVER LIKE TO SEE.