FAQs' About Systematic Investment Plan
Ans. Systematic Investment Plans (SIPs) often allow withdrawals at any time. Consider any applicable exits loads or fees. Mutual fund schemes vary in liquidity. SIP withdrawal information should be obtained from an advisor in finance or mutual fund company.
Ans. The return on a Systematic Investment Plan (SIP) is primarily dependent on the performance of the underlying mutual funds rather than the bank. Different banks offer SIPs with access to various mutual funds, and their returns can vary over time. To identify potential high-return SIPs, research or ask your financial expert because they have good knowledge about funds and returns, or make sure to take the right guidance from the right person like Swaraj Finpro for the right investment and compare the historical performance of different mutual funds available through various banks.
Ans. It’s very good to know that SIP in Mutual Funds can be initiated with as low as Rs 1000 or even Rs 500 and Rs 100. SIP is very good investment tool for everyone. It surely helps to grow money in long term. Any SIP works well in a time horizon of more than 5 years or so.
Determining the best SIP for investing 1000 per month depends on several factors, including your investment goals, risk tolerance, and investment horizon.
Large-Cap Equity Funds: They aim to provide stable returns over the long term. Examples include ICICI Prudential Bluechip Fund and SBI Bluechip Fund.
Multi-Cap Equity Funds: They have the flexibility to adapt to changing market conditions. Examples include Mirae Asset India Equity Fund and Aditya Birla Sun Life Equity Fund.
Balanced Funds: Balanced funds invest in stock and debt to balance growth and stability. For moderate-risk investors. HDFC and ICICI Prudential Balanced Advantage Funds are examples.
Index Funds: These funds imitate the performance of an index like the Nifty 50 or Sensex. They spend less. UTI Nifty Index Fund and HDFC Nifty 50 Plan are examples.
Ans. The AMC will usually send you an alert to tell you to renew your SIPs. You can decide whether or not to continue your SIP based on how well the scheme did during the period. On the AMC website, you can find the SIP renewal form.
Ans. Any money that has already been invested in the fund will stay there. If you cancel the SIP, it will only stop the next payment. Through your Mutual fund account, you can get back the money you invested.
Ans. And if SIP payments are absent for 3 months in consecutive months, the plan will end on its own at that point. But if a SIP payment is missed, the AMC will not take any action or charge a fee. However, the investor's bank may charge a fee if a SIP payment is missed.
FAQs' About Mutual Fund
Here are top 3 mutual fund schemes in India. For a long-term investment horizon of 10 years, consider these top 3 mutual funds in India:
Nippon Large Cap Fund - Stable and growth-oriented.
Kotak Mid Cap Fund - Mid-cap growth potential.
Nippon Small Cap Fund - High-growth small-cap stocks.
Ans. SBI Mutual Fund is safe because SBI is a reputable financial company. However, all investments involve risk, including loss of money. Before investing, evaluate the fund's objectives, performance, and risks. Financial experts build guidance on your investment objectives and risk tolerance.
SBI Mutual Fund, with a vast network of over 222 acceptance points throughout India, actively manages and delivers superior value to investors through approximately 147 schemes. It's generally regarded as a secure investment option due to stringent SEBI regulation, expert fund management, diversification, daily liquidity, transparent reporting, strong historical performance, thorough research, and robust investor support.
For personalized assistance and expert guidance, consider contacting Swaraj Finpro.
Ans. "Yes, mutual funds can be a good investment option for many individuals due to their potential for diversification, professional management, accessibility, liquidity, and convenience. They are also governed by SEBI (Securities and Exchange Board of India), which provides regulatory oversight and safeguards against fund companies misappropriating investors' money. However, it's essential to understand that mutual fund investments are subject to market risk, and one should carefully read all scheme-related documents and consider investing with professional guidance to make informed and secure investment decisions."
Ans. You can generally withdraw money from a mutual fund at any time without penalty. However, if the mutual fund is held in a tax-advantaged account like an IRA, you may face early withdrawal penalties, depending on the type of account and how the mutual fund has performed.
Ans. The return on an FD is set ahead of time and doesn't change during the period of time. Mutual funds, on the other hand, are connected to the financial market and give better long-term results.
Ans. Some equity mutual funds have given a 29.60 percent return to investors who invested during COVID.
FAQs' About p2p
Investors benefit from P2P lending through the following clear advantages:
P2P lending provides the potential for fixed returns on investments, ensuring predictable interest income.
It allows investors to beat inflation and earn higher interest rates compared to traditional debt products like fixed deposits and debt mutual funds.
Lenders can expect a net pre-tax return up to 12 % XIRR Max. on the net invested amount. There are so many different rates of returns available in P2P space, largely depending on the time horizon, the amount you invest, asset type, and service provider. P2P investments, however, do NOT guarantee any returns.
Contact Financial experts like Swaraj Finpro because they build the best guidance on your investment objectives and risk tolerance.
1. Diversification Expertise: We empower investors to diversify their investments across various P2P service providers, minimizing risk and optimizing returns.
2. Aggregator Platform: Our online P2P lending platform serves as a convenient aggregator for a wide array of P2P lending products, making the investment process seamless and accessible."
Peer to Peer lending, like other asset classes, works best with portfolio diversification. With an initial investment of INR. 1 lakh, you can build a lending portfolio across 100+ loans which ensures investment risks a minimized - enabling you to enjoy high yields consistently. Smaller investments, result in the concentration of portfolio across fewer loans and hence do not provide for sufficient levels of diversification. Hence, initial investments of less than INR. 1 lakh are NOT recommended.
Yes, Peer to Peer lending in India is backed by the RBI’s robust regulatory guidelines from October 2017. These guidelines recognize P2P lending platforms as a new class of NBFCs (“NBFC – P2P”) and define the scope of permitted activities, minimum capital requirements, and other key operational parameters.
FAQs' About NAV
Ans. NAV (Net Asset Value) is calculated by a mutual fund's managers at the end of the trading day. They add up the final prices of all the securities in the fund's portfolio, consider any new assets, account for liabilities, and then determine the NAV based on the remaining number of shares outstanding."
At the end of each market day, the NAV of a mutual fund is always calculated. This is because the value of securities on the market changes every day. So, a joint fund's NAV also changes every day.
Ans. NAV represents Net Asset Value. The NAV per unit shows how well a mutual fund plan has done.
Net Asset value, or NAV, stands for The NAV per unit shows how well a mutual fund plan has done. NAV per unit is the market value of a scheme's securities divided by the total number of units in the scheme on a certain date.
When NAV (Net Asset Value) is high, it indicates that the value of each unit in a mutual fund is higher. This suggests that the fund's underlying securities or assets have appreciated in value. Investors typically consider a high NAV as a positive sign, showing potential growth or profitability within the mutual fund. However, it's essential to note that a high NAV alone doesn't necessarily guarantee future performance or the fund's superiority compared to others.
FAQs' About Stock & Share
Stock and share are pretty much the same thing. They are both parts of the capital of a company that has both stocks and bonds. In India, they were always called "shares," but in the US, they were called "stocks." They both mean about the same thing.
There is no such thing as the optimal time to buy a stock because it all relies on your trading / investment strategy. Traders should purchase when the negative risk is lowest, and investors should buy when the upside potential is greatest.
Algorithmic trading (also known as automated trading, black-box trading, or algo-trading) employs a computer programmed to trade based on an algorithm. The deal can theoretically earn profits faster and more frequently than a human trader.
The stock market trades company shares. Markets trade index futures, index options, stock futures, stock options, VIX futures, etc. Equity and derivatives are traded on stock markets.
SEBI regulates India's capital markets. SEBI regulates exchanges, brokers, investment bankers, investors, sub brokers, analysts, distributors, rating agencies, etc. It ensures market integrity and protects retail investor interests.
Typically, a company's stock price is based on its growth prospects and profitability. The market assigns a stock's P/E ratio based on its appeal. Demand, supply, and news impact stock prices.