Hello,

Yes. It is very good to invest through Monthly SIP route in Mutual Funds.

(But please note that SIP is just a method of investing in Mutual Funds. It is Very Important to select Very Good MFs before you start SIP in them.)

To understand more about investing through SIP in MFs, do read the text below beyond the initial 7 points.

Investment in Mutual Funds through SIP route should be for a minimum period of 18 months & you should remain invested for minimum of 5+ years. (If you want your money back in less than 5 years, then invest in AAA-rated Fixed-Interest instruments like FDs or NCDs (Non Convertible Debentures etc.) etc.)

Always invest in 5-star or 4-star rated Mutual Funds of reputed Mutual Fund Houses (names stated in paras below), if you want your money to be in safe hands. (For MF ratings, visit: Welcome to Value Research )

Please note, Large and Very Large Companies (= LargeCap Companies) are typically considered Very Safe Companies to invest in.

Please note, Small and Very Small Companies (= SmallCap and MicroCap Companies) are typically considered Very Risky Companies to invest in.

Mid-Size Companies (= MidCap Companies) are also typically considered Risky Companies to invest in, but they are considered safer than Small/Very Small Companies.

Indicative LOW-TAX Returns (provided the investment in 5-STAR-Rated MFs, through SIP, is for minimum 5 years):

~ 15% returns per year, if you invest in Aggressive Hybrid MFs (Very Low Risk Category)

~ 16% returns per year, if you invest in LargeCap MFs (Low Risk Category)

~ 18% returns per year, if you invest in MultiCap MFs (Low Risk Category)

~ 19% returns per year, if you invest in MidCap MFs (High Risk Category)

~ 21% returns per year, if you invest in Small/MicroCap MFs (Very High Risk Category)

Thanku.