Mutual fund is one of the fastest growing investment product in India. Anybody can invest in this either by monthly investments mode or by lumpsum. The surge in the market share of Investment products has surpassed previous records and currently stands at 23 lakh crore.
If you want to invest a large sum and get returns on a monthly basis, then you can easily do it with Mutual funds.
1) If the market is high you can invest in “Liquid funds” and then do Systematic Transfer Plan (STP).
2) If the market is low, you can use the opportunity to invest a lumpsum immediately.
3) If you are retired and looking for constant returns, then you have Systematic Withdrawal Plan(SWP) where the investment amount is withdrawn a particular amount month on month.
Dividend options was one of the best in mutual funds and with abolishing the complete tax free stature, it is best to do SWP.
If you are looking to invest on a monthly basis for all your requirements then you can choose Systematic Investment planning and it is often referred as SIP.
Goal based Investing will easily work when it comes to SIP as we have discussed.
Mutual fund returns varies with Mutual fund companies and it purely depends on the stock picks or money market purchase by fund managers. It becomes easy if someone like fund manager does all the pain of shifting when stocks goes down.
Either equity or Debt products, Mutual fund helps with right investment products as it has wide varieties of choices.