SIP Investment: The Secret Ingredient to Growing Your Wealth Slowly and Steadily
Everybody is eager to get a new car, a bigger home, take their family on an exotic vacation, etc. Yet you can only achieve your dreams if you make a conscious effort. You can easily assist yourself in reaching your goals by investing in mutual funds using SIP investment. Before that you should know what SIP investment is.
What is SIP investment?
The SIP investment plan is an investment option provided by Mutual Funds that enables investors to invest a specified amount in a Mutual Fund scheme on a regular basis, such as once per month or once every three months, as opposed to doing so all at once. SIP investment has grown in popularity among Indian investors because it encourages disciplined investing without concern for market volatility or market timing.
To maximize your investing returns, your motto should be “Start Early and Invest Consistently”. By going with the SIP investment method, you can invest money at regular intervals each month, which will instil financial discipline and aid in future return realization. Through SIP investment, you can still benefit from or participate in the expansion of the Indian stock market even if your earnings or savings are modest by choosing to invest in systematic investment plans in a variety of mutual funds.
SIP Investment: The Secret Ingredient to Growing Your Wealth Slowly and Steadily:
When you make an investment in a SIP investment, the monthly profits generated by the SIP investment will be reinvested in the original amount of your investment until maturity. Hence, over time, the impact of compounding is applied to the amount of your investment, aiding in exponential growth. Mirae Asset Midcap Fund is a better kind of investment you can go with when you think about investing.
One of the safest and most practical ways to invest in the Indian equity markets through mutual funds is through SIP investment. You don’t have to worry about timing the market and making the appropriate investments when you invest in SIP investment plans, which is a huge advantage. You will receive fewer shares for the same price when the stock market is extraordinarily high, and vice versa. Hence, averaging is effective, and at the end of the day, your portfolio will be good.
By nature, there are constant fluctuations in the stock market. You can always help yourself by maintaining discipline in your investment strategy so that you don’t respond to the market’s short-term volatility.
Benefits of SIP investment:
The ideal method to enter the world of investing for the long term is unquestionably through one of the SIP investments provided by mutual funds. Some of them are:
- By beginning a SIP investment in two or more funds, an investor can diversify their portfolio.
- Under Section 80C of the Income Tax Act, SIP investments are eligible for a deduction against taxable income.
- Holding SIP investment for a long time is crucial to get the benefits of compounding.
- SIP investments, protect you from a variety of risks like Short-term risks, volatility, emotional and impulsive responses, and overspending.
Mirae Asset Midcap Fund:
The investment objective of the Mirae Asset Midcap Fund scheme is to provide long-term capital growth through a portfolio that is predominantly made up of mid-cap Indian equity and equity-related assets. The fund manager of Mirae Asset Midcap Fund may on occasion additionally invest in other Indian equities and equity-related securities for optimum portfolio development.
The investment strategy of Mirae Asset Midcap Fund:
Mirae Asset Midcap Fund primarily invests in mid-cap equity and securities related to equity. On the basis of variables like comparative valuations, liquidity, and market attitudes, the fund may also invest in other Indian shares. Mirae Asset Midcap Fund seeks to create a portfolio of firms with sound business plans that could develop into tomorrow’s large caps. It is a diverse portfolio with industry engagement. The majority of the companies in the universe of stocks will have solid business models, long-term competitive advantages over rivals, and excellent return ratios.
To reduce concentration risk and liquidity risk, the fund manager will work to build a strong portfolio. Before investing, the Fund Managers will keep an eye on the trading activity of a certain stock to reduce the risk of liquidity.
The types of investments of Mirae Asset Midcap Fund include 65% or more of the scheme’s assets primarily investing in mid-cap firms (101st -250th company in terms of full market capitalization) In order to qualify as a midcap fund, an equity mutual fund scheme must allocate at least 65% of its assets to midcap equities.
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