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Why SIP Mutual Funds?

The UTI Systematic Investment Plans is a unique and Best Mutual Funds SIP plans that allows you to fulfil all your dreams efficiently. With salient benefits and features, the UTI SIP Mutual funds becomes a wise choice for investments. An investor can make regular investments and follow a disciplined approach towards investing in UTI MF schemes. He can also peruse the Systematic Investment Plans according to pre-opted schedules.

Take a look at all that you can do with UTI SIP Mutual Funds:

  • Build your future.

    To meet the more exhaustive expenses of your life like marriages, education or a house, you need to start investing early. Save a small amount every month/quarter with Mutual Fund SIP and look forward to a bright future.

  • Relax and accumulate wealth.

    With Mutual Funds SIP, you don't need to invest a huge sum of money i.e. you can start Mutual Fund SIP with an amount as little as Rs. 500. Gradually, you can accumulate wealth over the long-term.

  • Reduce risks.

    For efficient participation in this volatile market, Mutual Funds SIP helps you average out your cost by generating superior returns in the long run. It reduces the risk associated with lump sum investments.

  • Enjoy the convenience.

    Set yourself free from cumbersome paperwork. Just identify the amount and scheme that you wish to invest in Mutual Fund SIP and then choose from options like Auto Debit/ECS. The amount will automatically get debited on a date of your choice. You can also give monthly/quarterly post-dated cheques for the amount you wish to invest in Mutual Funds SIP.

  • Build your investment at regular intervals.

    With SIP in Mutual Funds, you can invest a pre-determined amount of money in chosen schemes at the applicable NAV based Sale Price on each transaction date. Each transaction will fetch you additional units that will be added to your investment accounts.

Now, let's briefly discuss the step-by-step approach an investor can use with SIP Mutual Funds to reach out for his goals. It is important to remember that an early investor builds more than the one who comes in later. The simple reasoning being; the accumulated investment increases with fresh capital which is invested at periodic intervals.

Steps for Mutual Funds SIP:

  1. Set your financial goals.
  2. Identify the SIP Mutual Funds scheme or systematic investment plans.
  3. Decide the Mutual Funds SIP amount.
  4. Look for a long-term commitment by opting for bigger gains. SIP Mutual funds funds returns increase with an extended time horizon. Aim for the big picture which is to get the most out of the market fluctuations.
  5. Start investing in systematic investment plans! The sooner you start, the earlier you reach your financial goals.

UTI SIP Mutual Fund comes with its own benefits, the most pronounced being 'Rupee Cost Averaging'..

Best SIP Mutual Fund allows you to invest a uniform amount regularly. An average of all the cost of acquisition of units will in turn give you an average cost per unit. This will determine your overall return on your investments.

Rupee Cost Averaging

The table above shows that when invested through Mutual fund SIP, the average purchase price works out as low at 9.836, compared to a lump sum investment of Rs. 10.

The next benefit is seen as the 'Power of Compounding'.

As an investor, when you extend the investment period, you can earn profit on your current profit, and accumulate more wealth. This reiterates the fact that investing fresh capital at periodic intervals raises the accumulated investment.

The illustrated graph Systematic investment plans / SIP investment plans given below stands testimony to this.

Power of Compounding

Let us take an example of a monthly Mutual Fund SIP or systematic investment plans of Rs. 1000.

SIP Mutual Funds, Mutual Fund SIP, Systematic Investment Plans in India

*The Mutual Fund SIP amounts are indicative as the rates of growth are assumed, over specified periods.

ECS (Electronic Clearing Service) : ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in nature.

Regional ECS : RECS facilitates the coverage of all core banking - enabled branches in a State or group of States. The system takes advantage of the core banking systems in banks.For the debit to go through under RECS , core banking account is a MUST.

Direct Debit : This is a direct arrangement with the bankers for debit into account of Investors. For the debit to go through vide Direct Debit , core banking account is a MUST.

Post Dated Cheques (PDC) :Post Dated Cheques is another mode of applying through SIP Mutual Funds (Preferable only if the bank and location of the Investor do not form a part of Direct debit bank liSt / ECS / RECS location list)

SIP Videos

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

DESIGNED BY : Indigo Consulting
DEVELOPED BY :   Prosares Solution Pvt Ltd