I have SIPs of Rs 5,000 in DSP BlackRock Top 100 – G. Can I get monthly interest from this fund, similar to what I get from bank recurring deposits?
-Rajendra
Since you have invested in the growth plan of DSP BlackRock Top 100, you don’t get any dividend or any monthly income from it. You cannot compare this investment with a bank recurring deposit where you get an annual income. If you are investing for a period of 4-5 years, you can continue in DSP BlackRock Top 100, which is a good large-cap fund. But keep in mind that both investment vehicles have extremely different risk profiles. While the recurring deposit will give you a guaranteed return, the equity fund guarantees nothing. But if you keep investing systematically, the long-term returns from an equity fund will be more than what a recurring deposit will give you.
This article was originally published on February 07, 2012.
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