What is Equity SIP?

To understand Equity SIP, we first need to understand the basics of Equity Mutual Funds and SIP. Let’s start with Equity Mutual Funds.

Equity Mutual Fund - Overview

A Mutual Fund that invests money in equity (Shares of limited companies) to harness its potential for high returns is known as an Equity Mutual Fund. Such a fund is ideal for long-term investors, as the returns multiply over the years due to the power of compounding.

An Equity Mutual Fund is ideal for goals like

Saving up for retirement

Building a second home

Educating a child

SIP – Overview

A Systematic Investment Plan (SIP) is a financial planning scheme that allows you to accumulate wealth by making small periodic investments over fixed intervals of time (A person can start by  investing as low as Rs.1000 per month). This minimises the impact of volatile markets while maximising your returns.

Major Benefits :

Inculcates the habit of
disciplined investing

Leverages the power
of compounding

Delivers benefits via
rupee cost averaging

Provides tax benefits

Equity SIP – Overview

Equity SIP lets you invest in equity via SIP, thereby enabling you to minimise the impact of volatile markets through regular investments.

Why you should invest in Equity SIP

Over the last ten years, it has delivered a return of 10.28% (compounded). Equity SIP would have provided you an excess return of 27.30% over an FD.

Savings account
Return – 4%
x,xx,xxx

Fixed deposits
Return – 8.075%
x,xx,xxx

Provident fund
Return – 8.70%
x,xx,xxx

Equity MF
Return – 10.28%
x,xx,xxx

Welcome to Jaanoge Tabhi Toh Maanoge – a Birla Sun Life Mutual Fund Initiative.

To empower you with knowledge on Mutual Funds, this website presents you with Informative and Interactive tools. As you explore the site, you will come across informative infographics which empower you with knowledge on various facets of mutual funds, and interactive tools like Ask a Question, Mutual Fund quiz, etc. which answers your queries, test your knowledge, and much more.

Before you delve into the world of Mutual Funds, have quick read on the basics.

When does mutual fund come into play in your life? It is the moment you are ready to achieve following in your life: Create wealth from your investments, achieve various financial goals in your life and/or save tax.

Before you start investing in mutual fund, you should answer two questions: What is the objective (goal) you want your money to achieve for you? And how long can you keep your money aside to grow?

For achieving short term goals like buying a car, going on a family vacation etc. you can invest in debt funds. For achieving long term goals like child's marriage, retirement etc. you can invest in equity funds.

So if you want to achieve a goal, say child's education, in 2 years, then your investment should be in debt schemes (2 days - 4 years). If you want to achieve this goal in next 10 years, then your investment should be in equity schemes (5 years+).

You are just a step away from planning for your financial freedom. Click here to learn and explore on Jaanoge Tabhi Toh Maanoge!

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