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Sunday 20 January 2019

Top 6 Mutual Funds Tricks You Probably Didn't Know About (But Should Know) - Invest In Mutual funds

6 mutual funds tricks

Mutual Funds Tricks
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1. Increase the SIP amount

Got up in the office? So now you are making more money! great!
And now, you want to increase your SIP amount.
Unfortunately, this is a cumbersome process. What to do?
Very easy. Just start another SIP in the same mutual fund with the increased amount.
Suppose that you already have a SIP of Rs 5000 per month in Mutual Fund ABC, and now you want to invest Rs 2000 and more. Just start another SIP in mutual fund ABC where SIP amount is Rs 2000. There is no need to increase existing mutual funds to Rs 7000!

2. Invest in additional funds in SIP

You should invest as much as you can.
The above point of increasing SIP is fine if your income has increased. But what if you only have more money once? What if your salary has been similar, but you got huge bonus this month?
If you have ever made a lump sum investment, then you know that there is an 'investment more' option. You can just invest in whatever extra amount you want.
But what if you have a SIP?
Good News!
IP investment peer is also available in case of SIP! Many people do not know this sadness. But now that you know, you can also take advantage of this option!
So if your SIP is 10,000 rupees a month, and you want to invest Rs 2000 rupees this month, you can do this.

3. Partially redeem

So you need 1 lakh rupees for a holiday trip. But your total investment in mutual funds is Rs 7 lakh!
What to do?
Mutual funds only give you what you need.
So if you need Rs 1 lakh, then you can only withdraw that amount and leave it in mutual funds to grow the rest!

4. Creating One Time Investment Low Risky

Many times, you can wish to invest once. This is usually a big amount. As such, from the sale of a house or from heritage
But, you have heard that SIP reduces your risk.
So maybe you are thinking that you will start a SIP with the full amount.
that makes sense. If you are investing in equity mutual funds, it will definitely reduce your risk. But when you are doing SIP, the issue is that the rest of the money (the money sitting in your bank) are not earning very good returns!
You should try STP! Systematic Transfer Plan
In STP, your money is invested in low-risk debt mutual funds, which gives you returns that are higher than what your savings account or FD has given. Then, with the debt fund, the money goes on to the equity mutual fund of your choice on a regular basis.
It is like starting a SIP in the equity fund from the debt fund instead of starting SIP from your bank account.

5. Get a monthly income

You can also earn monthly income from a mutual fund.
This is called SWP. Systematic withdrawal plan
The idea is simple.
You invest a large amount in mutual funds to increase it.
Every month, you should get a certain amount. Therefore, mutual fund will redeem mutual fund units and send you money.
In this way, you get a fixed monthly income while your money is growing!
If the amount you withdraw is less than the returns of the mutual fund, you will never run out of money!

6. Store Money Like a Bank Account

Okay, before proceeding, you know that you get about 3.5% per year as a return from your savings bank account, right?
When you put your money in a bank, they pay you for it. Looks good, is not it? Yes. this is.
Except, mutual funds provide you some better.
Liquid Mutual Funds are very low risk mutual funds. They give about 6-7% returns per year. And, unlike other mutual funds, it takes only 1 business day to get money from liquid funds.
In such cases, the people who deposit money are kept in the liquid funds in the savings fund.
In this way, you can earn almost doubling while keeping your money in Savings Bank Account.

Mutual funds offer lots of benefits, it is difficult to keep an eye on them all.
With the above points, I just wanted to highlight some of the lesser known features of the mutual fund, which should benefit you!

Happy investment!

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