InvestorQ : HOW TO CONVERT AN SIP TO FIXED INVESTMENT PLAN WITH QUARTERLY/HALF YEARLY/ ANNUAL RETURNS.
D SANKARAN made post

HOW TO CONVERT AN SIP TO FIXED INVESTMENT PLAN WITH QUARTERLY/HALF YEARLY/ ANNUAL RETURNS.

Answer
image
Dawn Cherian answered.
2 weeks ago
Follow
I think you cannot make changes to your existing SIP plans. Therefore, you might require to start a new SIP. Now, if you want to fetch regular income you can invest in monthly-income plans that offer fixed returns on your investment. 

A monthly income plan is an open-ended mutual fund scheme that is a combination of equity and debt instruments. It typically invests about 65% of the capital in fixed income generating instruments and the balance 35% is invested in equity-linked instruments such as shares and stocks that provide market-linked returns. So, in order to invest in these plans, you will have to either stop your existing SIP and start new investment in these monthly plans. Or you can continue both by allocating the funds proportionately to each of them. 

This type of investment is suitable for investors who have a moderate to lower risk profile and are looking for stock market exposure while receiving fixed income. These plans are also called a hybrid fund.

However, before investing in any plan, make sure that it suits your investment objective, risk profile, and return expectations. Say, if you want to invest in a fixed income, you should choose a plan with at least 60% fixed income generating instruments. 
Also, you should compare different monthly income plans and analyze their past performance to find the best suitable fund for you.

1 Views