SIP - A smart way to invest your money

Hi All,

I believe 100% in SIP - MF investments. If you are a small investor, then I believe SIP is best way to expnd your portfolio. When I looking into some of the MF schemes online, I noticed couple of other terms - SWP, STP. I am just curious how these 2 are different from SIP.

Below is the answer to my question, now most of the AMCs are offereing all the below 3 options for the .

Systematic Investment Plan (SIP):An SIP is a method of investing a fixed sum, on a regular basis, in a mutual fund scheme. It is similar to regular saving schemes like a recurring deposit. An SIP allows one to buy units on a given date each month or quarter, so that one can implement a saving plan for themselves.

Systematic Withdrawal Plan (SWP):SWP is a smart way to plan for your future needs by withdrawing amounts systematically from your existing portfolio either to reinvest in another portfolio or to meet your expenses. Your savings no longer remain idle. Your money can earn better returns if reinvested, instead of lying idle in a savings account for meeting your regular payments.

Systematic Transfer Plan (STP):A plan that allows the investor to give a mandate to the fund to periodically and systematically transfer a certain amount from one scheme to another.

Thanks,

Soma

Demystifying Banking Terms article in livemint

Hi,
I somehow like the new website started by the Hindustan Times group. I really like some of the articles and its look and feel. Following is the link of one such article which explains about some of the banking terms we used to come across in our day to day life.
http://www.livemint.com/2010/02/02223010/Banking-terms-you-must-know-a.html?h=A1
For my reference, I have copied the content from livemint link. Thanks to livemint article, now I can clearly say difference between RTGS and NEFT. [:-)]
Hope to meet you with interesting content next time.. Happy learning and investing.