What returns mutual funds will give with Rs.1000 SIP?

SIP is a short form of - Systematic Investment Plan, where in an investor makes a periodic investment in mutual fund for appreciation of wealth. One of the new investor asked me this simple question –What returns can I expect investing in mutual funds with as low as Rs.1000. Here I tried to answer it in simple manner for every new investor’s benefit.

Mutual funds returns are dependent on three main factors- 

 

1. Appreciation of the fund you invested in
2. Amount and frequency of SIP you invest in that fund
3. How long you stay invested

Let me give an example-

Mr. X has Rs. 1000 as SIP at monthly frequency. He decides to invest in a fund, which historically shows average returns of say 25% for this case, which is possible and well proven historically for many funds. Considering the scenario remains the same and Mr. X is capable of taking the market risk, at the end of 10 years:

•   Amount Invested by Mr X: Rs.1.2 Lacs
•   Future value of SIP of Mr X: Rs. 5.22 Lacks
•   Total gains : Rs. 4 Lacs

That means income of Mr. X has multiplied more than four times in just 10 years, which is very good returns scenario. Similarly, if Mr X considered investing Rs. 10000 in the same situation, would have yielded 52.2 Lacks in just ten years. Isn’t it lucrative? Of course, mutual funds and stocks are risk and rewards based investments, but given the facts, it is advisable that you should invest in mutual funds if you are capable to manage risk associated with market fluctuations.

 

Hope this article was helpful to all the new investors! Happy investing and Enjoy!

Mutual Funds Screener for Better investments

Selecting right mutual funds is the key for your successful and growing portfolio. Investors always search for good web resources to screen & evaluate mutual funds. This is an important exercise prior to investing in any mutual funds. There are plenty of fund houses and thousands of mutual funds available for investing. A smart investor has to screen the best suitable funds for his investments. In this article, I am suggesting two important web resources where you can thoroughly study & compare the performance of different mutual funds.
So lets have a look at what are those resources-

1. Value Research- click here for visiting the website
This resource is literally your complete guide for mutual funds, as they say it in their tag line. One need to create a login id and password to use all the features of this resource. Spend some good amount of time and explore the enormous data available on this website. You have option of screening your mutual funds in many different ways- such as best performing mutual funds, AMC's or fund houses, annual returns, type of mutual funds, and so on.

2. Money Control- Click here for visiting the website
Money control is well known resource and gives you a list of mutual funds with Crisil ratings. Here you can screen down mutual funds based on several options like historical performance at various years, net worth of the fund and also you can compare the performance of different funds. There is an option of selecting category funds like banking, infrastructure, healthcare, technology etc. Option for selecting and screening large cap funds, midcap funds, multicap funds and so on.

I hope you will explore these two resources and use them, for screening the right funds for your portfolio. Let me know if you have any specific questions on the same. Soon I will share with some resources for  screening mutual funds. Meanwhile, happy investing and Enjoy!

Where to search good mutual funds and stocks

In the ocean of internet resources, investors always try to search for authentic information related to stocks and mutual funds. And rightly so, it is always advisable to conduct your own thorough research on funds and stocks before you invest your hard earned money. This would help you reduce the risk and increase your profits. I observed that, depending solely on paid services for stock tips and recommendations usually fail due to mismatch of timings and possibility of hidden agenda which is quite difficult to judge or identify. And hence it is recommended that one should do his or her own research and then invest, instead of depending on paid services.  Now the question is where to search information for studying the stocks and mutual funds.

Although there are many useful resources available, I will share my experience with two such excellent websites I use, when I invest in stocks and mutual funds. 

  

1. Google Finance (https://www.google.com/finance ) :

Google Finance is a wealth of information for stock market lovers. One needs to explore its full potential by spending some time on this website. I always keep the window of google finance opened in my laptop when the market is trading. The reason is, in a single page you get whole lot of information in front of your eyes, that too in a very simplified manner and without any clutter of unwanted information. You will get all the detailed information such as : 

• Live updating of all major global stock market numbers
• Click on your desired market and further details will appear
• The graphical representation is very nice and can be optimize for axis view as per convenience
• One interesting thing is- it shows past performance of not only stocks but also the mutual funds
• Historical performance not only limited to few years, & shows real past numbers for decades
• On the right side, upper corner – you see news related to stocks and indices
• Option of making your own portfolio to keep track of your interested stocks and funds
• Live updates on currencies and bonds 

 

2. Ratestar.in : ( http://www.ratestar.in/ )

This is again a tremendous source of technical information on thousands of stocks, mutual funds and interestingly the big investors. The additional information this website gives you is quarterly holdings of popular investors in the stock market, which you can search by simply typing the investor name. You can search for portfolio & holdings of top investors like Rakesh Jhunjhunwala, Porinju Veliyath, Dolly Khanna and so on. If you think to invest in the stocks where these top investors are investing, this website is helpful. Nevertheless, remember that, successful trading comes not by following an expert but more from learning the market dynamics and educating yourself to take decisions on timings and picks. The information you get here is

• Search stock holdings of top and famous investors
• Search thousands of companies for detailed technical information
• Apart from usual numbers, like market caps and PE, several key technical things to explore
• Quarterly and annual results, Key financial ratios and debt and profit status
• Assigned ratings (zero to hundred, hundred being best) associated with all stocks which is attributed to factors like financials performance & trends
• On the home page, you also see list of stocks with high performance ratings for quick review
• Also available as an android App. as beta version so you can use it on phone
• Less clutters and unwanted material which usually distracting the focus 

I hope this information is useful for you! Let me know if you have any comments or questions. Happy trading and Enjoy.