POSTED BY May 14, 2013 2:47 am COMMENTS (9)ON
Hi Friends ,
I have a question .
Is there any performance difference between a 1 time investment and Monthly SIP .
For example , If I do a one time investment of Rs 1,20,000 in a Mutual fund for 10 years , or opt for a Monthly SIP of Rs 1000 for 10 Years . At the end of 10 years , my total investment in the mutual fund would be Rs 1,20,000 .
So at the end of 10 years , will both the type of investment return the same amount of money .
Reason why I am asking is I am currently investing in 2 Mutual funds via Monthly SIPS .
They are SBI MAGNUM CONTRA and RELIANCE GROWTH FUND G .
They are not performing well now and hence I have decided to stop further investments in the above Mutual funds and instead start investing in performing mutual funds like SBI Emerging Fund and Reliance Equity Opportunities Fund – Retail Plan (G) .
If I now stop the SIPs, I should be able to collect Rs 3.5 lakhs from both the Mutual funds .
Now the question is how do I reinvest this Rs 3.5 lakhs back in Equity (Mutual funds) and also at the same time start investing the earlier amount I was investing monthly to the new Mutual funds via SIPs .
What would be the best way to invest all this money in the new mutual funds .
**** I have been asked by my financial advisor to stop further investments in the 2 non performing mutual funds .
I am sure that he would be able to advise me on the above .
Its just that I want to get some info on this before I dicuss the above with him , just for the sake of my knowledge .