WHAT IS SIP

SIP means Systematic investment Plan

It is one of the ways to invest in Mutual Funds

Through SIP you can invest in Mutual Funds in small installments on a monthly basis The investment is done directly by debiting your bank account on a specified date and Providing you a credit for the units purchased from

the amount
You can start your SIP by filling up a simple SIP form and providing bank auto debit Mandate

THINGS YOU SHOULD KNOW ABOUT SIP

Your SIP does not stop if you miss an installment
The AMC does not charge you any money for missing an installment Your bank however, may charge you as per banks policies All SIPs are done in Open ended funds There is no lock in for your SIPs (except tax saving funds) You can withdraw any amount at any point of time without stopping your SIP

BENEFITS OF SYSTEMATIC INVESTMENT PLAN

1. What is your equation to investments EARN->SPEND->SAVE OR EARN->SAVE->SPEND 2. Easy, Flexibility and Liquidity 3. Tax saving under section 80C

REASONS FOR INVESTING SYSTEMATICALLY

Light on the wallet

Lowers the average cost

Helps you build for the future

Compounds returns

http://www.tflguide.com/2009/07/5-reasons-for-investing-systematically.html http://www.tflguide.com/2011/02/systematic-investment-plan-mutual-fund-sipbest.html

Sip Rupee Cost Averaging

Through systematic investing ,you buy more

units when the prices are low and fewer units when the prices are high. This results in averaging of cost per unit popularly known as Rupee cost Averaging.

Assume that you have invest Rs.1000 on a

monthly basis for 4 months using a SIP.The tables below show the cost of investment of the same value but done at one time as compared to the investment done through SIP route.

summary
Investors needs to save regularly and invest those savings in higher return assets to create wealth

Long term
systematic monthly investment in equity schemes is ideal for this

SIP INVESTMENT

Month

Amount invested 1,000 1,000

Purchase price based on NAV( 10 9

No.of units purchased 100 111.11

1 2

3 4
Total

1,000 1,000
4,000

10 11

100 90.9
402.01

AVERAGE COST PER UNIT=9.95

Month

Amount invested (rs) 4,000 4,000

Purchased price based on NAV(RS) 10

No .of units purchased 400 400

1 Total

Average Cost per unit =RS10

As illustrated in the example ,using sip averages out the cost per unit ,which may result in wealth creation over time.

SIP is available in the following schemes

Equity Schemes L & T Growth Fund L&T Midcap Fund L&T Opportunities Fund L&T Tax Saver Fund Debt Schemes L&T Monthly Income Plan L&T Triple Ace Fund L&T Select Income Fund Flexi Debt Fund L&T Gilt Fund

L&T Contra Fund

L&T Hedged Equity Fund L&T Infrastructure Fund

L&T MIP-Wealth Builder Fund

L&T Short Term Debt Fund

Funds Managed by Roma Satnathi

L&T Growth Fund L&T Opportunities fund L&T Contra Fund L&T Infrastructure Fund L&T Monthly Income
Plan(Equity Portion)

Date

Nav per unit(Rs)

Scheme returns (%^

Bench mark return s(%)

Addition al benchma rk returns (%)

10.00 42.26 35.27 20.11