See below to know:
What is SIP ETF? | Performance | What is Elystar’s unique value-add? | How do I get started? | Who should (When to) consider this? | Why is this important? | How do I exit/liquidate?
Price/Advisory Fees: 499/- INR per annum
(Terms & Conditions apply, which will be shared with you when you Contact Us.)
A Systematic Investment Plan (SIP) strategy is a strategy where you invest monthly into a particular long-term investment product such as mutual funds, index funds, fixed deposits, etc. SIP ETF focuses on monthly investing into Exchange Traded Funds (ETFs)/Index Funds tracking major indices like Nifty 50 and Nifty Midcap 150.
The most common usecase is people investing for their retirement. Usually, people are expected to start investing as early as possible in their life and invest until about 5 years before their retirement for the power of compounding to fully work.
One can also use this to achieve any other long-term goals, as long as they put in their investments monthly for at-least 5 years and have a waiting/buffer period of at-least 5 years after the investment period. So for best results, one should plan at-least 10 years ahead (5 investment years and 5 buffer years).
Below we show performance comparison of various types of SIPs such as investing in bank/term deposits vs. investing in major indices such as Nifty 50 and Nifty Midcap 150 using past averages.
Note: Past performance or model performance may or may not hold in the future. All numbers and results should be used as guiding factors only, not to be targeted for exact returns. Actual performance will be subject to market risks. We do not guarantee any particular return numbers. Make sure to invest as per your overall risk profile considering your risk capacity, risk tolerance and risk appetite.
In this figure, we show the final amounts that are available for withdrawal when one follows an SIP strategy over a period of time (please see the table below for exact numbers).
The exact numbers used in the above figure are shown in this table. Let us go through an example, row number one. In this case, a person is investing for 5 years (60 months) and then waiting for another 5 years (buffer period) before redeeming the funds for usage. The person invests 1000 Rupees per month in the 1st year, 1060 Rupees per month in the 2nd year and so on.
If a person invests in Nifty 50 each month for 35 years and waits for 5 years at the end, and starts with 1000 Rupees per month, then the person would have invested a total of 13.37 Lakhs and at the end of 40 years, she would have got 1.73 Crores! (under above assumptions)
You may wonder, then why is it that everyone's not doing an SIP into the indices mentioned above?
In this image we show, what the real-feel is like when investing as per SIP strategy into Nifty 50 vs. doing the same into bank/term deposit.
As you can see it is not a smooth ride, investors who are investing may go through a range of emotions over time. Important thing is to not get carried away when markets are on the higher side and not to get depressed when markets are on the lower side. And to always plan much ahead (say, 2 years ahead) for any withdrawals.
We will do risk assessment to ensure that you can sustain this risk, however, you should also do your own assessment and be ready to take the risk. Once the risky nature of the markets is understood, the returns as you can see, clearly make up for the risk taken and give you good solid wealth for your long-term goals.
Our value-add in this service is to:
Simply submit your Email below or Contact Us and we will help with your personalized risk assessment and recommend you as to whether you are ready for equity investments and how much you should invest monthly in Nifty 50 and Nifty Midcap 150 as well as which Index Fund/ETF Tickers to buy for best performance.
Note: Your investments will be made by you yourself through your existing bank/brokerage platform and you will remain in-charge of your money and investments at all times. We only provide advice as to how to invest for good performance and charge a small fee for the same.
Anyone can consider this for any of their long-term goals such as retirement, children’s education etc. As mentioned above, for good results, one should plan at-least 10 years ahead. Usually people with some form of a monthly income participate in this before their retirement.
This is one of the simplest strategies which has been recognized world over to be one of the best returns-wise as well. It takes out the need to think every time one makes an investment as to where to invest and how much to invest and makes it an easy strategy to follow every month. An yearly review of the strategy is good enough to serve you well in the long-term.
As with any long-term investment related to equity markets, although you can sell your investments anytime you want, it’s best to plan your exit or liquidation of funds at-least 2 years before your actual requirement. Such early planning will help in reducing risk from any potential last-moment downward fluctuations in the market. We suggest you Contact Us when you are planning to liquidate your equity investments rather than follow a sell-at-the-last-moment strategy.