POSTED BY August 19, 2012 12:06 am ONE COMMENTON
I am in the beginning stages of learning about different types of investments. From whatever I found, I can infer the following advantages of SIP:
1. It’s not necessary to spend any time worrying about things like timing the market, diversifying a portfolio, etc., we can blindly invest, provided it’s a decently popular SIP fund.
2. It’s almost no risk for the long term (10-15 years), but still gives good returns (about 12-15%)
3. Equity SIP is tax free in India
In my financial planning, there are many times where there’s a big lumpsum for 2-3 year spans at times and the account gets much smaller at all other times. I was wondering if there are other vehicles similar to SIP, which lets you invest a lumpsum and possibly get better gains later(maybe 10-15 years later), with the same advantages outlined above.
Please correct me if I’m wrong. Thanks in advance for the help.