Business Description
HSBC currently offers investment products from third party entities registered and regulated in India. In SIPs, a fixed amount of money is debited by the investors in bank accounts periodically and invested in a specified mutual fund. The investor is allocated several units according to the current Net asset value. Every time a sum is invested, more units are added to the investor's account. Another unique technique which SIP investors can benefit from is rupee cost averaging. When the NAV net asset value of a mutual fund is low, more units are allotted in quantum with the SIP investment amount. Similarly, when the NAV of a fund is high, lesser units are allotted. This is referred to as rupee cost averaging which minimizes the risk associated with market volatility. SIP is a method which will adjust with any of the schemes which you pick for parking your surplus money. It implies that the clients are free to choose any plan and can enjoy the freedom of having a systematic investment plan as their medium to invest in. The scheme can either be equity, debt, or liquid the investment methodology remains the same. It is a mechanism which will not only inculcate the habit of regularised investment but will also contribute towards building a considerable corpus with smaller amount sacrificed at predefined intervals.
