What is Principal Mutual Fund Super SIP Option?

Mutual Fund is the new investment tool that people are starting to become aware of and accepting it. This is because of its inclusiveness of all kinds of investors from small to big ones. Even, the risk is moderate in comparison to precisely investing in stocks. It doesn’t matter if you have a huge chunk of money, with mutual funds you can also invest a small amount of money as low as INR 500. There are two ways in which you can invest in Mutual Funds - lumpsum and SIP (Systematic Investment Plan). The choice is entirely yours. Principal Mutual Fund has taken a step further and introduced something called as Super SIP to encourage more people to invest in Mutual Fund. Under this option, Mutual Fund investors are given the facility to top-up their SIP amount and name their investments. Want to know some more features? Be Posted.     

What is the difference between SIP and Lumpsum Investment?

Before we head to the question of the hour, let’s first explore what SIP and lumpsum investments are and how are they different. If you invest everything you have in on go in a mutual fund, then the investment is termed as lumpsum mutual fund investment. Whereas, Systematic Investment Plan, popularly known as SIP, is a fixed monthly investment made towards a fund.

SIP is apt for small/first-time investors who do not have a lump sum amount to spend on an investment while juggling between other expenses. On the other hand, lumpsums are made for big investor with high risk taking capacity and are aware of stocks and investment. SIP investments have been proved to be better performing based on the 5+ years returns that it has earned over lumpsum investment.

However, the choice is yours to make. The choice you make should be based on your risk profile, financial goals, expenses, savings and income. SIP Option is gaining popularity because most of the people don’t have a lump sum amount to spend on an investment while juggling between other expenses.

What is the Super SIP Option by Principal Mutual Fund and what are its Features?

Now that you are clear about what SIP is, let’s get to the new facility provided by Principal Mutual Fund within the SIP. The Super SIP was introduced by Principal Mutual Fund to make mutual fund investments quick and simple for the customer. It was also introduced to provide flexibility in the SIP investment process. Let’s have a look at some of the exciting features that Super SIP provides:

• iName: Under this feature you can name your SIP after your loved ones or according to your life goals. This helps you track the progress of your investment. This naming facility is not provided by any other fund houses.
•  iBooster: Super SIP option automatically increases your SIP amount on a periodic basis. This in turn helps you meet your life goals faster.
• 3-in-1 Advantage: Investors will be able to invest in three different funds or three SIP by just filling one form. Apart from saving, it is an easy way to diversify your investment.
• Pause feature: It gives you a timeout option from your SIP investment. When you are done resting, you can resume your SIP investment anytime you want.
• Perpetual: With the Super SIP by Principal Mutual Fund, you need not worry to renew your SIPs. You can continue investing till your lifetime or if stop it whenever you want to.