Sip Rate Of Contribution
The contribution rate for employment insurance system eis is 0 2 for the employer and 0 2 for employee based on the employee s monthly salary.
Sip rate of contribution. So in order to know how a particular fund is performing in the market one can calculate return on sip mutual fund. Sip is a well disciplined way to invest and create wealth for future. Thus the overall contribution limit barring limits is 20 of 92 9 that is 18 6 of net profit.
For example if your sip is rs. For a particular contribution rate cr the reduced rate is cr 1 cr. Likewise you can make a bigger contribution to your sip account when you receive a bonus or an additional income.
This saves one from the trouble of filling forms and cheques or logging on digital platforms for every sip contribution. The contribution rate is based on section 18 and schedule 2 of the employment insurance system act 2017. This sip allows you to increase the sip amount at regular intervals and take advantage of a well performing mutual fund scheme by increasing your investment amount.
Sip investments are generally for a fixed period of 1 year 3 years or 5 years. A sip mutual fund is referred to as perpetual sip if you do not mention the end date in the mandate date. Benefits of sip as compare to lump sumps investment.
Ensuring higher rates. For a 25 contribution rate this yields a 20 reduced rate as in the above. Since investments are done in intervals the impact of market volatility reduces automatically.
You get a rough estimate on the maturity amount for any monthly sip based on a projected annual return rate. For example if a sole proprietor has 50 000 net profit from self employment on.
