Savings play a vital role in our life. But we always tend to forget the importance of savings. Each and every one of us would have planned many things for our future, but we tend to skip over the most important step that is savings. We tend to give more importance to earning but not savings. Both earnings and savings are mutually complement of each they are indispensable. Through savings we can have a wide range of benefits we can fulfil our goals, educational purposes, tourism, urgent health care, or any other financial emergency.
Basic Principles of Systematic Investment Plan (SIP)
- We need to invest the amount as early as possible, such that we do not face any financial crunch and not get stressed during the period of investment.
- For higher returns, we need to invest for long period of time for example15 years to 20 years such that the amount will be useful for your future goals
- There are several types of systematic investment plans which are provided, each plan offers certain returns. So need to be careful while choosing the plans.
What are 10000 Monthly Systematic Investment Plans?
The fluctuations in market are reduced by systematic investment plans. These plans are suited for the young working class. By investing 10000 you can receive high returns to achieve your future goals. This can be invested in equity, debt, gold etc. The advantage of SIP’s is you can monitor the increase and decrease in investment. You need to invest minimum 5 years for high returns. In the following tabular column there is a list of best 10000 monthly systematic investment plans along with their year return percentage and type
Why 1000 investment plans?
These investment plans are the smartest plans which are available in market. The investor can gain lump sum amount after certain period of time
- These plans are much affordable than other SIP
- They provide high returns after certain period of time
- They have different portfolios
- When market is high we can buy limited shares when market is low we can buy more shares.
Types of Investment Plans
There are four types of investment plans with unique features they are
Conservative investment plan- this type of investment is also called defensive investment, this involves low risk. This can be used to achieve capital security. For examples, treasury bills, bonds and market securities.
Balanced investment plan- this type of investment involves moderate to low fund. This consists of 60% stock and 40% bond. This type of plan balances your security and income
Diversified investment-this plan has moderate risk. The amount is invested in various industrial sectors and financial instruments
Aggressive investment- this type of investment involves high risk factors. Eg high yield bonds, small cap funds.
What happens when you invest RS.10000?
Various plans offer various returns; let us see what happens when we invest RS.10000 for 20 years
| Details | SIP Plan Type | |||
| Conservative | Balanced | Diversified | Aggressive | |
| SIP amount (monthly) | Rs.10,000 | Rs.10,000 | Rs.10,000 | Rs.10,000 |
| SIP tenure | 20 Years | 20 Years | 20 Years | 20 Years |
| Estimated returns | 10% | 12% | 14% | 17% |
| Risk involved | 12% | 15% | 20% | 35% |
| Total investment | Rs. 24,00,000 | Rs. 24,00,000 | Rs. 24,00,000 | Rs. 24,00,000 |
| Return value | Rs.76.5lakhs | Rs.99.91lakhs | Rs.131.6lakhs | Rs.202.2lakhs |
| Wealth Ratio | 3.19 times | 4.16 times | 5.48 times | 8.43 times |
The amount we have invested grows exponentially depended on the plan we choose. The financial stability completely relies on the plan we choose
Which plan is best for SIP investment?
Almost all financial sectors offer 1000 investment plans. But we need to choose the best investment plan among the plan. The following table describes the key features of the plan.
| Fund Name | Category | Type | 1 year return | 3 year return | 5 year return | Risk Profile |
| ICICI Prudential Technology Direct Plan Growth | Equity | Sectoral / Thematic | 19.09% | 32.89% | 28.15% | Very High Risk |
| Quant Infrastructure Fund Direct Growth | Equity | Sectoral / Thematic | 29.40% | 34.30% | 21.90% | Very High Risk |
| HDFC Short Term Debt Fund Direct Plan Growth | Debt | Short Duration | 3.10% | 7.40% | 7.30% | Moderate Risk |
| Aditya Birla Sun Life Short Term Direct Fund Growth | Debt | Short Duration | 3.90% | 7.70% | 7.60% | Moderate Risk |
| SBI Equity Hybrid Fund Direct Plan Growth | Hybrid | Aggressive Hybrid | 9.60% | 13.10% | 12.50% | Very High Risk |
| Canara Robeco Equity Hybrid Fund Direct Growth | Hybrid | Aggressive Hybrid | 7.40% | 14.10% | 12.40% | Very High Risk |
| Mirae Asset Tax Saver Fund Direct Growth | Equity | ELSS | 9.90% | 19.20% | 16.70% | Very High Risk |
| BOI AXA Tax Advantage Direct Growth | Equity | ELSS | 8% | 21.70% | 16.10% | Very High Risk |
ICICI prudential technology plan growth
This plan is a sectoral equity plan. The investments are done in IT sector. The 3 year return is 32.8% and 5 year return is 28.1%
HDFC short term debit fund direct plan growth
This plan has short duration and there is no exit loan for this plan. The 3 year return is 7.4% and 5 year return is 7.3%
Canara robeco direct growth plan
This plan is aggressive and involves high risk. The 3 year return is 14.1% and five year return is 12.4%. For withdrawal before 1 year you need to pay 15% tax
BOI AXA direct growth plan
This plan has a lock up period of 3 years that is you cannot withdraw the amount before three years. The 3 year return is 27.1% and 5 year return is 16.1. If you have received more than 1lakh you need to pay 10%
Aditya Birla short term funds
This plan has short duration it does not exceed more than 3 years and involves low risk. First time investors can use this plan. This plan can be used to achieve short term goals like travel, education or urgent medical care.
Summary
In this write up we have come to know the uses of 10000 SIP plans, their uses and various plans of 1000 SIP. A person who invest 10000 will gain financial corpus and achieve their future goals