Keep Investing in SIP; Let the Markets achieve New Highs! Monday, May 22, 2017
On 26th April 2017 the BSE S&P Sensex closed above the 30,000 mark for the first time in its history, and the Nifty scaled a lifetime high as well. Benchmarks Sensex and Nifty finished at lifetime highs for the third day in a row on 17th May 2017, due to the robust buying momentum triggered by the early onset of monsoon and strong economic growth. The BSE Sensex rose by 76.17 points, or 0.25% to end at 30,658.77, while the broader Nifty finished at 9,525.75, up 13.50 points, or 0.14%. Markets remain volatile thereafter, today (22nd May 2017), BSE Sensex opened on a positive note and was in a mood to achieve new highs however, it closed 100 points up at 30,570. Markets may achieve new highs in near future but how will it benefit you?
As an investor, very important questions could arise in your mind as markets are at all-time highs…. Will it move further upward? Is it the right time to exit (book profits and wait for markets to correct so that you can start buying shares at a lower price level)? Or should you hold on to your investments and continue as per your long term financial plan?
When the markets attain new highs, you should remain invested. Remember that you should exit when you have achieved your financial goals. The entry and exit from your investments should not depend on the market level. You can start investing in the market at any time and have patience till the time your goal is achieved.
How to Invest in Markets?
You can start investing in market by way of Systematic Investment Plan (SIP). Investment in mutual funds via SIP is perhaps the best suitable option for investors. You can buy and sell shares on your own, however it is not an easy task. You may not be able to track markets all the time and predicting the future value of markets is a very tough call. However a team of professional fund managers can do this job for you. This is the advantage of investing in mutual funds.
Be a part of the India Growth Story...SIP by SIP
Systematic Investment Plan (SIP) is one of the most preferred ways to invest in a mutual fund wherein you pay a set amount every month/quarter/half year for a set tenure. For example, if you take an SIP of Rs. 500 (minimum) for 1 year on January 1st, 2017, you will be paying Rs. 500 per month for the next 12 months. It helps you to smoothen out the market fluctuations and therefore investments are at a low cost over a period.
Why should you invest in SIP?
|•||It is easier for a person to invest a small amount every month rather than a big amount all at once.|
|•||SIP allows you to buy more units as the markets go down and fewer units as the markets move up. But you stay invested either way.|
|•||Another advantage of SIP is that it trains you to become a disciplined investor. As a SIP investor, every month you invest a specific amount, ignoring market volatility.|
|•||Reduces risk due to cost averaging. As you invest on a monthly basis, overall cost of investment is low. You may not buy 1,000 units at a time but in SIP you can buy units on a monthly basis and by the end of the year your investment is large. In total you bought 1,000 units however on a regular basis which helps you to reduce the risks of buying large units at a single time.|
|•||Long term financial goals can be aligned with SIP.|
Let’s start your first SIP, today
As mentioned earlier, you can start a SIP at any time. According to AMFI (Association of Mutual Funds in India), Indian Mutual Funds currently have about 1.35 crore (13.5 million) SIP accounts through which investors regularly invest in Indian Mutual Fund schemes. AMFI data shows that the mutual fund industry added about 6.26 lac SIP accounts each month on an average during the FY 2016-17.
Have you started investing through SIP? If not, open a SIP account right away!
You can start your first SIP with Quantum Mutual Fund. Quantum Long Term Equity Fund (QLTEF) is the flagship fund of Quantum Mutual Fund and has more than a 10 year track record. If you are a long term investor, then QLTEF is a great way to start!
Apart from QLTEF, you can invest in Quantum Equity Fund of Funds. The Quantum Equity Fund of Funds invests in equity funds of other fund houses and also boasts of an enviable track record which is visible in factsheet.
|Name of the Scheme||This product is suitable for investors who are seeking*||Riskometer|
|Quantum Equity Fund of Funds|
(An Open-ended Equity Fund of Funds Scheme)
|•Long term capital appreciation|
• Investments in portfolio of open-ended diversified equity schemes of mutual funds registered with SEBI whose underlying investments are in equity and equity related securities of diversified companies
Investors understand that their principal will be at Moderately High Risk
|Quantum Long Term Equity Fund|
(An open-ended equity scheme)
|• Long term capital appreciation |
• Investments in equity and equity related securities of companies in S&P BSE 200 index
Disclaimer, Statutory Details & Risk Factors:
The views expressed here in this article are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.
Mutual fund investments are subject to market risks read all scheme related documents carefully.
Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.