[sabby]

Does anyone have a SIP account? Require some advice about which bank would be good?
My banking knowledge is as good as none. Had visited couple of banks but the staff was not exactly clear (seemed like they had no idea themselves).

They mentioned some tax and non-tax benefit schemes which I could not understand.

[apache_rider]

S.I.P is basically Systematic Investment Plan, what has it to do with Banks. Afaik its related to Mutual Funds. Please explain the whole scenario, I might be able to help.

[R3x]

True. Not all banks have SIPs and not all Mutual Fund Managers have banks here in india... so this is very subjective.
Best bet would be to look at the mutual funds doing well in the market (probably from sites like moneycontrol.com) and then see if they have SIP options available. But then, the markets aren't doing too well these days. So your own analysis may not be very judicious (i am sorry if i underestimated your capabilities... !!) So "agents" (or friends in the trade) may be in a better position to suggest one..

[sabby]

S.I.P is basically Systematic Investment Plan, what has it to do with Banks. Afaik its related to Mutual Funds. Please explain the whole scenario, I might be able to help.

Hmmm...did not know that, I had gone to the AXIS bank after my friends suggestion, the bank rep mentioned about signing up for SBI mutual funds.

(i am sorry if i underestimated your capabilities... !!)

Ah...you haven't my friend

[darth_lucifer]

Some mutual funds offer tax benifits of upto 1 lakhs under section 80 C( I guess this has increased in last budget) google and find out

Abt systematic plans its investing over a period of time (every month regularly) so that market rises or falls over a year you have 12 investments over different periods so that average price you have got is actually true average price.

For example you buy 1 lakh of MF in one go you wont get the benifit of falling market.So investment over a period of time reduces risk.



Yeah SBI is good it offered me average of 20 % dividend over last two years.I invest in it every year.

rest statistics show sometime but SBI MF is consistent and considering your money gets locked over a period of time I would like funds which would give me dividend every year.

[apache_rider]

Okay you go the right info then, I am using Axis bank investment services since quite sometime.

If you plan to invest money in Mutual Funds now I would suggest you to do talk to the Investment Manager in the branch and take some basic idea about the way to invest and the fund allocation/your priorities/tenure of inestment and risk involved, in the meantime do reserach about the funds suggested by them in money control or valueresearchonline and then decide upon the investment.

Remember the market is volatile now and choose carefully if investing in Pure Equity funds.Debt funds are safest while balanced funds have a mix of both in a ratio.

There are certain funds which have tax benefit but has a lock-in of 3 years(as generally all tax saving instruments have ).

Coming to SIP, its basically an option to invest regularly(a kind of RD) where a fixed amount is invested by you(through ECS, Cheque etc) into specific fund(s),now a days all major funds have SIP as an option. All you need to do is choose the fund and start investing, Sip starts generally by minimum of Rs. 500.

[sabby]

Setu & Darth, Many thanks. Points noted : )

[kamikaze]

I had a SIP account with HSBC. It was a simple Savings account but I invested in a mutual fund using the SIP route and they would simply debit my account each month. Any account can be used for SIP meaning any account can be used to make the investment in SIP schemes. HSBC said I could give them my HDFC bank detials and they woyuld debit my HDFC account for the monthly investment.

I think SIP is a good options given points by Darth_lucifier - acerage price of the fund and hence distributed risk but also simkply because this way you end up saving some money each month....Do not expect exceptional reuturns from SIP either for the very same reason of diversified risk and hence reduced returns as well.

[kamikaze]

Debt funds are safest while balanced funds have a mix of both in a ratio.

There are certain funds which have tax benefit but has a lock-in of 3 years(as generally all tax saving instruments have ).

I had a bad experience with Debt funds. Amazinf experience with Equity funds. But then again its the market.

Profits from Equity funds are tax free gieven you are invested in them for atleast a year. So technically only a year's locking period.

What kind of mutual funds are you looking for?

Those good old says of good returns

[abhi1975]

My idea of SIP :

I buy 5 units of UTI Gold ETF (Exchange Traded Fund) every month.