Friday, September 12, 2014


Dear Friends,

Click here to view the last post on "How to Create Database and Migration in SQL Azure".Along with learning return is also most important factor. Before stepping a head here return means the amount you invested and of course learning means not SQL, but yes it’s SIP.

SIP, stands for Systematic Investment Plan. Now what is SIP??

Is it investing in some plan systematically as the name states? Yes, it is investing in some plan systematically & that too in a disciplined manner just like RD Recurring Deposit (which are offered by the banks).

Now a question here might be if RD is offered by banks then who provide SIP. Answer for that would be “we have fund houses (HDFC, Birla Sunlife, Franklin India and many more) who maintain the invested amount”. Before selecting any fund house kindly go through the past performance. Following we’ll see some facts about SIP:

1.       SIP is a Mutual Fund & it is subjected to Market.
2.       As traditional Mutual Fund provision us to invest into the market whole amount at a time but in SIP amount is invested every month.
3.       As said SIP is just like RD in terms on period. That is every month the said amount is deducted (Min Rs.500) and that much units are created into your account.

Brief about SIP & How does it work:

SIP is just as investment into some Mutual Fund (MF), but not like traditional one. Traditional MF, invest your lupsum money, whereas in SIP it will invest per month.
A person who is having long term horizon of at least more than 3-4 Years should consider investing into this. On Contrary if the horizon is less than this one should opt for RD, Debt Funds, Short term liquid funds, etc...

We can start the SIP online or else through Agent too.

Investments are never too late, so start investing as soon as you realize it.

I personally do follow the below thought, which was said by Warren Buffett’s –
Don’t save what is left after spending; rather spend what is left after saving.

Last but not the least “Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing.”