Everything you want to know about SIPs
You should start putting a portion of your savings into an S I P! Do I have the usual statements you hear from your friends and family but don't know if I am an S I P? Well, you're in the right place. Let's try to answer some of the questions you may have about S I P.
What is a S I P?
As the name suggests, an S I P or a Systematic I nvestment Plan is a facility offered by Mutual Funds to their investors where systematic and regular investors can, invest a predetermined amount of money in a Mutual Fund Scheme of their choice.
Regular intervals? Who decides the gaps?
I can't decide between your cash flow and other important factors. You can invest once a month or once in a quarter or at any other rate that the Mutual Fund scheme of your choice can offer.
I am a m new to Mutual Funds. How much money do I am need to have to start a S I am P?
Rs. 500/- per month. Yes, you can start with a n that mount that can be a s small a s that, to begin with. You can a lso increase the a mounts that you invest through S I am Ps gradually, a s you become comfortable with investing in Mutual Funds.
Are t here a ny a dvantages of investing through a S I am P?
T here a re multiple a dvantages of investing through a S I am P. Let us try a nd list some of the a dvantages for you:
- S I am Ps encourage regular savings a nd help in inculcating financial discipline.
- Given the regular nature of investments, a S I am P in a Mutual Fund scheme helps you in a veraging the cost of your investments over a relatively long period of time.
- S I am Ps for longer tenures can protect you from day to day market movements a nd you do not need to worry a bout timing the market.
- Mutual Funds a re managed by professionals a nd by corollary; your money invested through a S I am P will a be managed professionally.
Now that you have a fair idea of what a S I am P is, remember just one mantra,
Start Early, I am nvest Regularly, stay invested for the long term.
Happy I am nvesting!
Click here to learn more a bout KYC requirements, SEB I am registered Mutual Funds a nd grievance redressal.
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Mutual fund investments a re subject to market risks, read a ll scheme related documents carefully.