Freedom SIP: There are many options to invest in mutual funds. Systematic investment plan SIP is very popular among them. But have you heard of Freedom Sip? What exactly is this Freedom Sip? Now let us know how their investment will increase by several folds through this.
Freedom SIP: Systematic Investment Plans (SIP) are very popular among mutual funds. By investing in a systematic way.. you can get huge returns in the long run. Through SIP we can invest as much money as possible in mutual funds. We can draw with whenever we need. That is why many people opt for the SIP procedure. But have you ever heard of Freedom Sip? What is the real Freedom Sip? What is the main difference between normal SIP and Freedom SIP? Let’s find out how to multiply the investment by several folds.
ICICI has introduced a new scheme called Freedom SIP. Actually it can be said to be a combination of Systematic Investment Plan (SIP) + Systematic Withdrawal Plan (SWP). If you want to invest in mutual funds.. you have to choose a specific period. According to a method, certain amounts should be invested. After completion of your intended tenure, you will receive a large sum of money. This is called sip. But ICICI Prudential Mutual Fund has added a systematic withdrawal plan to this. After completion of tenure you withdraw a fixed amount monthly instead of taking a large amount at once. This is called Systematic Withdrawal Plan. The remaining money is reinvested in a target scheme. This money will get returns again.
According to ICICI Funds website.. Suppose you invest Rs.10 thousand every month for 8 years. After your chosen tenure, you can make systematic withdrawals of Rs.10,000 per month. If your SIP tenure is extended to 10 years.. your monthly SIP with draw amount is Rs. 15,000 will increase. If you continue the same formula for 30 years, you can withdraw up to Rs.1.20 lakh every month. Of course the compounding effect is at work here. That’s why the time period has increased a little.. your income has also been increasing.
