BANGALORE: The Bombay Stock Exchange Sensex even rose to more than 1,400 points to 25,375. However, after the elections trading seem to be progressing, and the heavy profit-booking ensured that the market closed the day by sharp ups and downs. With new and stable government stepping in, the stock markets are also stable. When it comes to regular stock investors, such swings are not strange.  But if you are investing for the first time the swings may bother you. You should always try to invest your money where it will not be affected by the ups and downs of the stock market.

Let’s have a look at the fund investing schemes and how they are performing this year:

Systematic Investment Plan best for first time investors: A Systematic Investment Plan or SIP is one of the hassle free modes for investing money in mutual funds. It allows you to invest a certain pre-determined amount at a regular interval. A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future. Your money is auto-debited from your bank account and invested into a specific mutual fund scheme. You are allocated certain number of units based on the ongoing market rate for the day. Every time you invest money, additional units of the scheme are purchased at the market rate and added to your account. Hence, units are bought at different rates and investors benefit from Rupee-Cost Averaging and the Power of Compounding.