Can investment in mutual funds be done by way of SIP(i. E. Monthly instalment), or it needs to bought with a single payment?
Yes, you can invest in MF by monthly SIP’s (minimum amount is Rs. 500/- per month, you can invest anything higher that Rs. 500/- as per your convenience).
Also, one time investment is also there.
My suggestion would be to go for monthly SIP’s, because this will take care of market up’s and down’s. When on certain months markets are down, you will higher units, due to smaller per unit rate and vice versa when markets are high.
Yes, it can be done, SIP is good enough for around 10% average return. Almost 0.5-1% extra from FD...SBI , Birla, Reliance are good.
MIS is also a good alternative for your money on post office. Put your MIS amount to RD and it will give you on average of around 10.5%. Central Bank Cent Percent Double FD is also a good alternative.
First plan out your COMMITTED monthly investment. Warren Buffet never invest in MF as i read in investopedia article. Copy Pasting the article below
""""Increase the Size of Your Investment
While it rarely - if ever - makes sense for investors to "put all of their eggs in one basket", putting all your eggs in too many baskets may not be a good thing either. Buffett contends that over-diversification can hamper returns as much as a lack of diversification. That's why he doesn't invest in mutual funds. It's also why he prefers to make significant investments in just a handful of companies.
Buffett is a firm believer that investors must first do their homework before investing in any security.""""""
So before investing your hard earned amount to any randomly company or SIP or investment, first do your homework...
Good Luck :-)