Mutual Funds

Systematic investment plan

This is a plan to invest in mutual funds by making smaller investments in monthly or quarterly rather than huge single time investment.

Single time investment

This is nothing but one time investment in selected mutual fund.

Here we are taking systematic investment plan as monthly plan for explanation.

Yes! Systematic investment plan is better than any investment plan on mutual funds, because systematic investment will average your purchase units monthly.

Single time investment buys units for fixed price; if stock market goes down your investment will goes down according to stock market. If you have chosen a systematic investment plan, when stock market goes down! You will get more units for less price, that mean you get more units for the same price which you are investing every month.

So always prefer to invest in a systematic investment, because you know that the cumulative units average price is low where as compare to units, which you get by investing as a single time investment.

This is my real experience that I am currently investing money as systematic investment plan in various sectors. I saw that when stock market went down from 21000 to 8000 on BSE index, my net worth is affected about 30 to 40% only, where as I have some funds that I invested as one time investment are affected about 50 to 60%.

If you could have invested in mutual funds, am sure that you know the power of funds and how they can create a wealth for your future financial freedom.

Most of the market researchers suggest that every one should invest in a systematic investment plan to become a multi millionaire. If you plan to invest one thousand rupees a month for about twenty to thirty years, you will get a more than one crore, if market yields just 12% per annum.