There are numerous fund companies now.
Every company is introducing creative ideas to increase the profit and fund holders.
In that list, Benchmark mutual funds introduced a new way of investing.
It is called a Value Investing Plan.
It is completely different from systematic investment plan.
This idea was developed based on market fluctuations.
This plan is a perfect solution for volatile market.
In systematic investment plan, the fund investment is divided into equal amounts.
The equal amounts are paid as monthly installments in SIP.
What is VIP? In value investing plan, money investment is different.
Same amount of money is not paid regularly here.
If the market is high, high investment is made.
If the market is down, low investment is made.
As the market condition is not always stable, this plan works out well.
Many people do diversification to avoid market risk.
VIP is a much better idea than diversification.
As the investment is made according to the market status, the returns are always good.
The advantage of SIP is rupee cost averaging.
The advantage of VIP is lower per unit acquisition cost and high return percentage.
Investment varies by each month here.
So finally, units are bought at lower price only.
This is called lower per unit acquisition cost.
Investment must be made for long time in this plan.
Long time investment is the key to huge returns.
This plan has high return percentage compared to SIP and other regular schemes.
Benchmark S&P CNX 500 Fund is introduced with value investment plan.
There is no charge on entry load.