Systematic Investment Planning
SIP called Systematic Investment Plan, involves investing a specific amount of money in the stock market or mutual funds at regular intervals according to your financial goals. SIP is primarily done on a monthly basis, with a portion of earnings allocated towards investments. It aids in managing financial risk in volatile markets and simplify compounding of money over the period of time.
Benefits of SIP
Power of Compound Interest
Even a small SIP investment can significantly grow over time due to compounding, accelerating its growth and helping you achieve your financial goals with a substantial sum.
Investment Stability
Investors can utilize SIPs to invest in a wide range of securities and diversify their portfolios based on their goals and risk tolerance.
Simplifying Investments
There are some investments that are tax-efficient, for example, if you invest in domestic stock SIPs for more than a year, you won’t have to pay capital gains tax.
Discipline with SIPs
Through goal based investment planning, a complete analysis of the investor and his goals is taken into consideration with followed diversified investment planning.
When to invest in a SIP
SIP in Early 20s
Begin your investment journey in your career’s early stages. Learn to save and invest wisely with SIPs, even with a modest income. Lay the foundation for a secure financial future.
Plan SIP in 30s
Start preparing for major goals like buying a house or marriage. Utilize SIPs to steadily grow your savings and achieve financial milestones with ease.
Secure Future SIP in 40s
With growing family responsibilities, SIPs help plan for children’s education and retirement. Invest wisely now to safeguard your family’s future and achieve long-term financial stability.
Retirement SIP in 50s & Above
Secure your retirement with a strong financial plan. SIPs offer stability for desired lifestyle post-retirement. Invest now for a worry-free future.
FREQUENTLY ASKED QUESTIONS
Starting an SIP is easy. First, you need to select a fund that is best suited to your long-term goals and risk profile. You can do this yourself, or you can take the help of a professional financial advisor. Once you have zeroed-in on a fund, you need to fill the SIP application form, post which a fixed amount is deducted from your bank account every month and directed towards the mutual fund you choose to invest in.
SIP frequency refers to the pre-defined interval at which a fixed amount, mandated by you, is deducted from your bank account. You can go with a monthly, quarterly, semi-annual, or annual frequency.
Investing via SIP is not limited for any mutual fund scheme. You can start an SIP with any amount that you wish. There is no upper limit on SIP.
Yes, you can increase your SIP amount at any point. There are two ways to do that. You can either start a new SIP with the additional amount or you can opt for a facility, commonly known as SIP Booster or SIP Top-up, that lets you increase your SIP instalment amount at a pre-defined interval.
No, you can not switch your SIP from one fund to another. You will need to stop the current one and start a new one in your desired fund. But, the corpus accumulated through past instalments, in an open-ended fund without a lock-in period, can be switched to another fund.
A Mutual Fund Agent is a professional who helps investors choose the right mutual funds based on their financial goals, risk tolerance, and investment horizon. They provide expert guidance on fund selection, offer insights on market trends, and assist in the process of purchasing and redeeming mutual funds. By working with a mutual fund agent, you can ensure your investments are aligned with your long-term financial objectives.
A Systematic Investment Plan (SIP) allows investors to invest a fixed amount regularly in mutual funds. It is a disciplined approach to investing, helping investors to average the purchase cost over time, thus reducing the impact of market volatility. SIPs offer flexibility, convenience, and compounding benefits, making it easier for investors to build wealth steadily.
The returns from an SIP vary depending on the performance of the mutual fund chosen and market conditions. Historically, equity mutual funds have provided returns between 10-15% per annum over the long term. However, SIP returns are not guaranteed, and the performance can fluctuate. It’s important to stay invested for a longer period to maximize returns through compounding.
While you can invest directly in mutual funds, a Mutual Fund Agent offers expert advice and personalized service to help you make informed decisions based on your unique financial goals. They provide in-depth knowledge of various schemes, assist in creating a diversified portfolio, and help you navigate complex investment choices. A Mutual Fund Agent can also guide you on tax-saving options, risk management, and rebalancing your portfolio as per market conditions, which may enhance your overall returns.
or call us at 997 100 9292 / 882 689 6236
