Mutual Fund SIP News: In the last one year, many foreign markets have given much better returns in the Indian stock markets, after which international investments have once again come into discussion. Markets like the US, Japan, Taiwan and South Korea are witnessing a sharp rise, which has led to an increase in returns from many international mutual funds available to Indian investors.

However, there remains an imbalance in investor access. Some international schemes are allowing both large sum and SIP investments, while many other schemes are restricting new large sum investments and allowing investors to invest only through SIP. The result is an abnormal situation. Some of the best performing international funds of last year are not completely open for investment.

Why are investors investing abroad?

According to the information received, there has been a huge difference in the performance of Indian and global markets in the last one year. The difference is clear, while Indian market indices gave negative results, many foreign markets also made strong double digit gains. Technology-intensive markets particularly led the rise, with the Nasdaq rising nearly 39 percent and Taiwan’s market index more than doubling. Many international mutual funds available to Indian investors have also benefited from this strong performance of global markets.

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Many international funds are investing through SIP

While fully open ended funds have delivered impressive returns, there are even better performing funds in the SIP-only category. Interestingly, among all the schemes surveyed, the highest one-year return was from Edelweiss Emerging Markets Opportunities Equity Offshore Fund, which gave a return of 83.18 percent. China-focused, emerging markets and US technology funds also feature prominently among the top performers. This means that investors who prefer to invest larger sums will not be able to get direct access to some international investments through these schemes.

What do the data reveal?

Three major trends emerge from the data…

• First, technology continues to dominate global returns. Nasdaq affiliates occupy many of the top positions among fully open funds, reflecting the strength of US technology stocks.
• Second, emerging markets have made a strong comeback. Funds focused on emerging markets and China have delivered returns equal to, and in some cases even higher than, those focused on the US.
• Third, access is still limited. Many high-yield international schemes prohibit large amounts of investment, creating a gap between opportunities and investors’ ability to quickly deploy capital.

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Difference Between SIP and Step up SIP: In this era of inflation, everyone wants to save as much money as possible. To save money, people invest, which earns interest and saves money. For this, people mostly resort to SIP. But do you know that apart from SIP, there is also step-up SIP, which can also become a better investment for you.

What is SIP?
SIP is called Systematic Investment Plan. This is the simplest and most popular method of investment. In this, every month a fixed amount is deposited in the mutual fund as installment. After this it fluctuates according to the market price. Gradually it becomes a strong investment over a few years.

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What is Step-Up SIP?
Step-up SIP is an advanced form of regular SIP. In this, the person increases his invested amount every year, due to which it increases with time more than the normal investment. Just as income increases with time, similarly in Stepup SIP also the installment amount increases with time.

Difference between SIP and Step-Up SIP?
In SIP, you invest a fixed amount for a number of years, on which interest is charged as per the annual rate and this amount increases. So through Stepup SIP, you can increase the interest rate every year by increasing the fixed amount, this is more beneficial.

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Understand Step-up SIP with example

• Suppose you have taken a SIP of Rs 5,000 per month.
• If invested for 12 months, an investment of Rs 60 thousand is made and the interest on it increases by 10 to 12 percent.
• After one year, if you increase SIP to Rs 6 thousand, then the investment for the year will be Rs 72 thousand.
• So you will get interest on this Rs 72 thousand, in this case your investment will increase but at the same time you will also get interest and saving will be more.

SIP Rules: In today’s time, investing in mutual funds has become a need for everyone. In this also people are preferring to invest through SIP (Systematic Investment Plan). This is a very popular system, which does not put much burden on the investor’s pocket. However, this is a bit difficult for investors to understand. How much return can I get? In how much time will the money increase? There is always doubt on such questions. In such a situation, the 7-5-3-1 rule acts as a handy guide. So let us also tell you what is this rule?

What is SIP Rule 7531?
If you also want to invest in SIP then know about this rule. According to this rule of SIP, if you invest in SIP for a long time, your money may grow at different rates at different times. In simple words, this rule states that your investment money can double in approximately 7 years, can increase by 50% in 5 years, can increase by 30% in 3 years, and can give you returns of up to 10% in 1 year. However, this is just an estimate and also depends on the market situation.

understand with example
Suppose a person has done SIP of Rs 5 thousand every month. If he continues this investment for 7 years, his total investment will be Rs 4.2 lakh. According to the 7-5-3-1 rule, this amount can almost double to around Rs 8 lakh. However, it completely depends on the fluctuations of the market. You can get less amount than this or even more.

Similarly, if a person makes the same investment for 5 years, he can get a return of around Rs 6 lakh. Whereas on investment of 3 years this amount can reach around 2.3- 2.5 lakhs. If you invest for one year, this amount will increase marginally. Due to which there will be no benefit to you or any investor.

Let us tell you that every investment also depends on the market condition. It is very important for the investor to remain patient. So that every investor can get long term benefits. Because the real benefit of SIP comes only with time.

Everyone is worried about their future, in such a situation we look for the help of investment for this. Especially employed people, who work for 62 years and after that they have to survive only on their savings. There are many methods for this, but most people like to invest in SIP or PPF. However, many times we are not able to differentiate between the two as to which is better for long term investment. So today we will tell you which of the two will be beneficial for you.

What is PPF?
First of all, it is important for us to know, what is PPF? The full name of PPF is Public Provident Fund. This is a popular long term savings scheme of the Government of India. PPF gives tax free returns for 15 years. This is a great option for retirement planning. PPF is a scheme of the Government of India, so it is a safe savings or investment plan.

What is SIP?
Now let’s talk about SIP, the full name of SIP is Systematic Investment Plan. This is a mutual fund in which people like to invest more. This mutual fund can be short term or long term. In this you invest a small amount every month. It completely depends on the fluctuations of the market. It is not tax free and when we have to withdraw money from it, we get interest as per the market rate.

ppf vs sip
Both PPF and SIP are good options for long-term investment. But PPF is a government scheme, hence its returns are fixed. In PPF you will get returns according to the interest rate of 7.1 percent. So the return of SIP is not fixed, it is a high return policy which is linked to the market. In this, returns range from 10 percent to 14 percent. Although money remains safe in PPF but returns in SIP are not safe.

What will increase the most money in 10 years?
If you invest Rs 10,000 every year in SIP for 10 years, do you know how much this amount will become after 10 years? SIP gives compound returns of 12 to 15 percent, so you will get good returns from it. By investing Rs 1 lakh in this, you can get approximately Rs 1 lakh 75 thousand at the rate of 12%. If you keep depositing the same amount in PPF, you will get it at the current interest rate of 7.1%.