Systematic Investment Plan (SIP)
Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals– say once a month or once a quarter, instead of making a lump-sum investment. The installment amount could be as little as INR 500 a month and is similar to a recurring deposit. It’s convenient as you can give your bank standing instructions to debit the amount every month.
​
SIP has been gaining popularity among Indian MF investors, as it helps in investing in a disciplined manner without worrying about market volatility and timing the market. Systematic Investment Plans offered by Mutual Funds are easily the best way to enter the world of investments for the long term. It is very important to invest for the long-term, which means that you should start investing early, in order to maximize the end returns. So your mantra should be - Start Early, Invest Regularly to get the best out of your investments.
Benefits
-
Inculcates the discipline of investing regularly
-
As stated earlier, SIP investments are made at regular intervals i.e. either monthly, quarterly or every six months on a predetermined day. The SIP amount is automatically debited from an individual’s account and the amount is invested in the scheme chosen by the investor. This disciplinary approach of regular investments is of big advantage to the investor as he/she doesn’t need to actively track the market.
-
Convenience
-
Another good thing about investing via SIP is that it’s a hassle-free process. All an investor needs to do is to instruct his/her bank to enable auto-debits from their account. This way the investor doesn’t need to go manually and pay his/her installment amount, the technology does the job for him/her.
-
Rupee cost averaging helps an investor beat market fluctuations and makes his/her investment averse to market volatility. When the stock prices hit rock-bottom, SIP allocates an investor more units, and allots lesser units when the stock prices soar high thereby, averaging out his/her savings.
-
Power of compounding refers to earning profits by investing your profits. In order to make most out of compounding in mutual funds, one must begin investing early and stay invested for a long time.
-
Own more stocks in small quantities
-
Investors will need a large surplus if they decide to purchase individual stocks directly in order to have a diversified portfolio. But when you invest in mutual funds, you can own these stocks in small quantities with just a few thousand rupees.
How to Invest :
PAN card , address proof ,Photo and other documents/information require to do KYC.
After KYC you can invest in Mutual fund with us through offline and/or online.
KYC is required before investing in a Mutual fund.