In a SIP or Systematic Investment Plan, a predetermined amount of money is invested in a fund on a regular basis. The investment can be made monthly or quarterly without interruption, and this way, SIPs allow investors to create wealth via regular investment and compounding returns!
There are many types of SIP, and multiple financial institutions offer them, however, before starting a SIP, you should check out the past performance of the fund. Also, you should take a look at the best stock for SIP investment and various funds, such as PNB MetLife fund performance to make an informed decision!
Let us provide an in-depth idea of what is SIP, its benefits, and the type of SIP that will be most advantageous for your personal financial goals.
A Systematic Investment Plan, commonly known as SIP, is a financial plan that allows investors to invest in a monthly, quarterly, and yearly manner, and the set amount can be as little as Rs. 500 depending on the particular fund. Using SIP allows the investor to invest in a time-bound manner without worrying about market dynamics, and they stand to profit a lot since SIP is considered safe investments with high returns in India.
When you enroll in a systematic investing plan or in a SIP for NPS, the sum will be automatically deducted from your bank account and reinvested in a fund you select at a specified time interval. Then you will be assigned units for your fund based on its net asset value, and later, any additional units will be added to your account at the market rate. With each investment, the amount that you reinvest will increase in addition to any profits that you receive from that investment. Remember, the average returns in SIP are quite lucrative, and the investor selects whether or not to receive the returns at the end of the SIP's duration or other intervals.
The following are the several types of SIP that you should consider investing in, but choose wisely based on your financial situation and future planning.
There are multiple benefits of SIP investment, so let’s take a look:
Yes, SIP investment is safe and is a great way to invest in a fund, which is exactly why SIP for beginners has become a highly popular investment option among the younger generations! If you invest a lump sum amount in a fund, depending on market conditions, you may wind up paying a very high price for the allocated units; to avoid this, consider investing in a fund when the markets are not inflated.
However, when investing through a SIP, you don't have to worry about market timing since SIP involves investing a small amount of money every month or quarterly! Make sure you have done your research on tax on SIP returns to avoid paying unnecessary taxes or accidentally paying less tax than you should.
Now that you know all about SIP investment, it is time to decide exactly when you should start investing in SIP. Consider your investment horizon, the investment's goal, as well as your financial objectives and risk tolerance before starting the fund.
To make sure that you are choosing the best investment option for you, do some research on finance topics and other fund details such as ULIP NAV so that you can be satisfied when you finally begin your investment plan!
Before you start your SIP investment journey, it is best that you inquire about the best index fund for SIP or the best SIP to invest for the long term from a financial advisor! A SIP is a recurrent investment in which the sum is automatically deducted from your bank account and deposited in a fund of your choosing, as a result, SIP funds provide you with more units with each installment. However, because the scheme's NAV fluctuates, with the same SIP amount, you can buy fewer units when the market is high and more units when the market is down.
Suppose you want to start a SIP with a monthly investment of Rs. 5,000 in a fund called ‘X’, and the fund's current Net Asset Value (NAV) is Rs. 50 per unit, which gives you an initial allocation of 100 units. However, as the fund's NAV changes, the amount of units given each month will vary depending on that factor. All these units from each month are regularly added to your portfolio, which contributes to your wealth growth.
FD is for conservative investors who are risk-averse and are satisfied with a lower but set return rate while people with a more risk-taking mentality can go for SIP to benefit from a potential high return quickly.
Certain funds have a SIP lock-in period, and in such cases, you cannot withdraw money until the lock-in period has passed. However, there are other funds, such as Open-ended funds, that allow you to withdraw money whenever you wish.
The rule of 8-4-3 is used to calculate how quickly you can double your invested money, and knowing this rule is important when evaluating long-term investing prospects! According to this rule, invested money rises evenly for the first 8 years, then accelerates for the next 4 years, and finally, the snowball effect occurs for the next 3 years.
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Large Cap Funds: A Smart Investment for Consistent Returns
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Piyush Kataria, SEO Manager at PNB MetLife, is a seasoned digital marketing strategist with over a decade of experience in optimizing websites for search engines. His expertise extends to keyword research, content strategy, technical SEO, and link building, all of which have been instrumental in driving organic traffic growth at PNB MetLife. With a strong foundation in life insurance, Piyush leverages his industry knowledge to create targeted and effective SEO campaigns.
Sakshi Malhotra is a seasoned marketing professional associated with the Life Insurance industry since 2007. At PNB MetLife, she heads Digital Marketing and Direct to Customer line of business. She is responsible for driving effective customer engagement through the company’s website and social media channels. In addition, she drives customer online buying journeys to help them buy the right product.
At PNB MetLife we are delighted to offer a new fund, the “Nifty 500 Momentum 50 Index Fund” (ULIF03115/02/25NIFTYMOMEN117). The objective of the fund is to invest in a basket of stocks drawn from the constituents of NSE’s NIFTY 500 Momentum 50 Index, subject to regulatory limits. The Nifty 500 Momentum 50 Index aims to track the performance of the top 50 companies within the Nifty 500 selected based on their Normalized Momentum Score. Historical data from NSE suggests that the momentum strategy has outperformed vs broader indices in the past. Regulations may restrict us from investing in all the stocks/sectors in line with their weights in the index from time to time, resulting in tracking error. The index funds which track momentum strategies are best suited for individuals with very high risk tolerance and long-term investment goals.
PNB MetLife Nifty 500 Momentum 50 Index fund (SFIN: ULIF03115/02/25NIFTYMOMEN117). NAV of Rs.10/- will be applicable for duly completed proposals received from 15th to 27th February 2025 and issued on 28th February 2025. For policies issued after 28th February, the prevailing on the day of issuance will be applicable.
T&C apply: These are the returns of benchmark indicates of the return of the PNB MetLife NIFTY 500 Momentum 50 Index Fund. This fund is available with PNB MetLife Smart Platinum Plus Plan (UIN: 117L125V04), Goal Ensuring Multiplier Plan (UIN: 117L133V04), Mera Wealth Plan (UIN: 117L098V06), Term with Unit Linked Insurance Plan (UIN: 117L136V01) which are an individual, Unit-Linked, Non-Participating, Life Insurance Plan. *The above illustration shows the value of Rs. 20,000 invested monthly since Apr, 2005 in the NIFTY 500 Momentum 50 Index Fund, accumulated as of 31st Dec, 2004 (nineteen-year period). The calculation are based on Index data provided by NSE and exclude any scheme-level expenses.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited
Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
IRDAI Registration number 117 | CIN U66010KA2001PLC028883
For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time. Please consult your tax consultant for more details.
Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.
| Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers! IRDAI or its officials is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint. |
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