This document summarizes the key benefits of a Systematic Investment Plan (SIP). [1] An SIP allows investors to invest fixed amounts at regular intervals, which helps average costs and reduces risks associated with market timing. [2] It provides better returns in the long run by making investments grow with the power of compounding. [3] SIPs can help investors achieve different financial goals like child's education, vacations, or retirement by accumulating wealth over time through disciplined investing.
This document summarizes the key benefits of a Systematic Investment Plan (SIP). [1] An SIP allows investors to invest fixed amounts at regular intervals, which helps average costs and reduces risks associated with market timing. [2] It provides better returns in the long run by making investments grow with the power of compounding. [3] SIPs can help investors achieve different financial goals like child's education, vacations, or retirement by accumulating wealth over time through disciplined investing.
This document summarizes the key benefits of a Systematic Investment Plan (SIP). [1] An SIP allows investors to invest fixed amounts at regular intervals, which helps average costs and reduces risks associated with market timing. [2] It provides better returns in the long run by making investments grow with the power of compounding. [3] SIPs can help investors achieve different financial goals like child's education, vacations, or retirement by accumulating wealth over time through disciplined investing.
This document summarizes the key benefits of a Systematic Investment Plan (SIP). [1] An SIP allows investors to invest fixed amounts at regular intervals, which helps average costs and reduces risks associated with market timing. [2] It provides better returns in the long run by making investments grow with the power of compounding. [3] SIPs can help investors achieve different financial goals like child's education, vacations, or retirement by accumulating wealth over time through disciplined investing.
A Systematic Investment Plan or better known as SIP is
based on the simple idea of investing a fixed amount at fixed intervals, for a long time to achieve long-term benefits. It helps you average your cost of investment over time.
2 How does an SIP benefit you?
BENEFITS:
Reduces the risk Reduces your Gives better
associated with average cost returns in the market timing of purchasing longer run
Inculcates a Makes your Helps with feeling of money grow with long-term discipline to the power of approach of save and invest compounding investment regularly
3 Rupee Cost Averaging
By Investing fixed sums at regular intervals , you pick up more units when the prices are low and less units when the prices are high.
This brings down the average cost of your units hence, there is no need to time the markets as you invest at predetermined intervals. Particulars Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 SIP Amount 10000 10000 10000 10000 10000 10000 NAV 100 90 110 105 95 115 Units 100 111.1111 90.90909 95.2381 105.2632 86.95652
Total Investment Total Units Average NAV
60000 589.478 101.785
This is for illustration purpose only. Actual results may vary. 4
SIP Goals How can an SIP help with your child’s future?
Parenting comes with a lot of responsibilities and expenses.
Starting an SIP keeping these expenses in mind can help one
plan their child’s future better.
Wealth accumulated Monthly SIP approximately of Rs. 10,000 Rs. 23.2 Lacs
YEARS
10 Calculation based on 12% p.a. growth rate compounded monthly. This is for illustration purpose only. Actual results may vary. 6 How can an SIP help plan vacation?
One can invest through SIP for vacation fund, allowing one to visit desired destinations and manage expenses worry-free. Wealth accumulated approximately Rs. 8.2 Lacs Monthly SIP Rs. 10,000
YEARS
5 Calculation based on 12% p.a. growth rate compounded monthly. This is for illustration purpose only. Actual results may vary. 7 How can an SIP help one after retirement?
One may stop working, but the expenses never stop. Here is how an SIP can help post-retirement: Accumulate a considerable amount of money for retirement
Corpus value at 60 years
Rs. 6.5 crore Monthly SIP Rs. 10,000 AGE OF
60 Investment started at the age of 25 years
Calculation based on 12% p.a. growth rate compounded monthly. This is for illustration purpose only. Actual results may vary. 8 9 Is 2019 a year of market volatility?
Yes, it is! A few factors contributing to the market volatility in 2019:
National A Pre-Poll Trade War Crude Oil
Elections Union Budget Issues Prices
10 Understanding market volatility
Similarly, if the prices of a stock
VOLATILITY If the price of a stock fluctuates fluctuate slowly in a longer time is referred to fluctuations of rapidly in a short span, it is said span, it is said to experience stock prices in the market to experience HIGH VOLATILITY LOW VOLATILITY
11 Misconceptions about volatility
We always connote volatility as a negative piece of information.
Here are few of the common MISCONCEPTIONS related to volatility:
• Cashing in is the right thing to do
• Checking the productivity daily
• Shares lose value when they fall in price
• Stopping SIPs when the market falls
12 Why is 2019 the Year of SIP?
With an SIP, an An SIP is a simple When the market The investor can investor can turn investment strategy drops, stock prices benefit by investing in the year of market which aims to give become comparatively more for a lower price volatility into a year better returns in a lower, providing of opportunities volatile market more units.
13 #Year of SIP
The key is to be disciplined, focus on financial goals, and invest in
mutual funds through SIPs for a better future.
Year of volatility Year of possibilities
and opportunities 14 To know more, Visit Download contact your www.icicipruamc.com IPRUTOUCH APP Financial Advisor
Mutual Fund investments are subject to market risks, read all scheme related documents carefully
15 Caution to the Investors
Jan 30, 2017 PR No.: 8/2017
1. Some unlisted companies are luring retail investors by issuing securities including non-convertible and convertible debentures/ non-convertible and convertible preference shares/ equity shares in the garb of private placement, without complying with the provisions of Companies Act, 1956 read with the Companies Act, 2013, SEBI (Issue and Listing of Debt Securities), Regulations, 2008, SEBI (Issue and Listing of Non-Convertible Redeemable Preference Shares), Regulations, 2013 and SEBI (Issue of capital and Disclosure Requirements) Regulations, 2009.
2. Any offer of securities made to 50 or more persons has to be construed as a "Public Offer" under the provisions of Companies Act, 1956.
3. Under Companies Act, 2013, "Private Placement" shall be made only to such persons whose names are recorded by the company prior to the invitation to subscribe. Further, in case of private placements, the company shall not release any public advertisements or utilise any media, marketing or distribution channels or agents to inform the public at large about such an offer. Further, such offer or invitation shall not be made to more than 200 persons in the aggregate in a financial year.
4. As per the provisions of Companies Act, 2013 and SEBI Regulations, no issuer shall make public issue of these securities, unless it has made application to the recognized Stock Exchange(s) for listing of such securities. Further, the issuer, among the other things, is required to file the offer document with RoC/Stock Exchange/SEBI etc. The issuer has to make disclosures about the issuer company, the promoters of the company, the risk factors etc.
Kindly, refer the latest update on caution to Investors on the below link http://www.sebi.gov.in/media/press-releases/jan-2017/caution-to-the-investors_34109.html
