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Showing posts from May, 2012

When investing money for a year which is a better option - fixed deposit ,FMPs or MIP ??

Fixed deposits: Better than savings account are the other investment options like bank fixed deposits schemes. One can invest in a FD with varying maturities. If he needs certain amount of money after 1 year, he can invest in for 1 year FD for that much amount and for other amount can have FDs of different maturity. This will help him meet the liquidity needs and also earn interest. He can go for the regular returns options like the quarterly or half-yearly payout options. Else, he can choose interest re-investment option. However, remember that interest income earned in FD and savings account is taxable. FMPs: Fixed Maturity Plans (FMPs) are income/debt schemes giving a fixed return over a period of time. They are actually similar to fixed deposits in banks. The maturities offered were varied, going from one month to three years. They are close ended schemes, which are open only for a fixed period of time during the initial offer. While the money is locked, FM

SCIENCE OF SIP

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What is SIP and how does it work : What is SIP and how does it work: Just like recurring account, in SIP investor commits fix amount on a regular basis. In fact SIP is more convenient and investor friendly than recurring deposit. Investor can start SIP in any of the mutual fund scheme. In this investor can decide a particular day of the month on which he/she wants to make investment. Once day is decided and mentioned in the application form, fixed amount gets debited from the account on that particular day and equivalent numbers of units get allotted to investor based on that day's NAV. Why SIP : Automatic Market Timing & Rupee Cost Averaging: The biggest advantage of SIPis you can time the market automatically, as irrespective