If you are planning to invest in mutual funds but cannot deposit a large amount at once, then ‘Micro SIP’ (Systematic Investment Plan) can be a better option for you. Through this, you can create a fund of lakhs of rupees even with a minimum investment of Rs 100 per month. Most fund houses in the country offer plans to start investing with a minimum of Rs 1000. But some fund houses allow investment from Rs 100 as well. What is Micro SIP?
Micro SIP is a way to invest in mutual funds. In this, investors can start with a minimum monthly contribution of Rs 100. Fund houses launch such investment options to attract small investors. To make investing in mutual funds more affordable and easy, fund houses are preparing to reduce the amount to be deposited every month to Rs 50. This method of investment reduces the average monthly investment of the investor. Benefits of Mutual Fund Micro SIP: Is long term SIP investment profitable?
There are many types of mutual funds like equity, debt and hybrid funds etc. It is often seen that investing in equity funds proves to be more profitable in the long run. The reason for this is that doing SIP in equity funds for a long time reduces the risk of fluctuations in the stock market. An average return is generated from the low and high levels of the stock market and the benefit of compounding is also available. But it is not that there are no mutual funds for short term. Investors can also do SIP in debt or hybrid funds keeping in mind their needs and the investment period. Is it right to invest money in daily SIP or monthly?
There is an option to invest daily, monthly, quarterly in mutual funds through SIP. The facts that have come to light in research in the last few years show that in the long term it does not matter much how many times you are doing SIP in a month if the total of SIPs done for the whole month is the same.
