FinanceIndia

What is SIP? Mutual Funds India offer a variety of choices to investors, in terms of the kind of fund to invest in, such as debt or equity etc. They also offer a choice in terms of how the investor wants to invest - SIP or Lumpsum. While both are popular methods of undertaking Mutual Fund investments, an investor can choose one or both methods based on their need and convenience. In case of the SIP investment, the investor has to make periodic investments, based on the chosen frequency, such as daily, monthly, quarterly or yearly. They have to pump in money on the chosen SIP date, for the investment tenure and allow the amount to grow into a substantial corpus over a period of time.   How it works? SIP mutual funds brings discipline in investing by making sure the investor invests small but regular amounts in the chosen scheme, over time. On choosing a frequency and date, the money automatically gets debited from the investor’s bank account. But, in case, there is insufficie...

ELSS or equity linked savings schemes are open ended diversified equity mutual funds which have a lock in period of 3 years as they offer tax benefits to investors under Section 80C of the Income Tax Act 1961. Also known as ELSS funds , one can invest in ELSS through SIP (Systematic Investment Plan) or through lumpsum (One time investment). It must be noted that taxes can be saved either through risk free or market linked schemes. The former consists of PPF, national savings certificates (NSC), traditional insurance policies and more. The latter, on the other hand would consist of ELSS and ULIPs (unit linked insurance plans). In the risk free schemes, capital safety is assured whereas the ones with risk are subject to market risks. Investors that want total safety of the money invested should only opt for government savings schemes, FDs or other risk free options. On the contrary, if one is willing to take a certain amount of risk and remain invested in ELSS even beyond the lock in...