Systematic Investment Plan
When an investor chooses to invest a fixed amount periodically in a certain fund that is known as SIP. Investments can be monthly or Quarterly. A few Fund houses also accept daily and weekly SIP’s. Hence, SIP is not an investment, it’s a mode of investment.
SIP is a great enabler and SIP is a smart & hassle-free mechanism for investing in Mutual Funds. It disciplines investors to invest a fixed, pre-determined amount.
SIP not only helps you build wealth but also instills the habit of savings. In short, SIP is a simple and smart way of investing in mutual funds. Minimizing risk and creating wealth.
How Does SIP Work?
When you start a SIP investment, your money is invested into a specific mutual fund scheme (decided by you) and gets auto-debited from your bank account. In return, a certain number of units are allotted to the SIP investor. A number of units are based on the current market rate (known as the net asset value or NAV) on the date of the investment.
Each time a debit takes place from the investors bank account, additional units of the mutual fund scheme are purchased ( at the prevailing rates) and credited to the investors mutual fund account (also called a folio number). This is where SIP is magical. It enables investors to buy at all market levels hence averaging smartly. This is exactly why SIP has gained prominence the world over. As it helps in rupee cost averaging. If the markets are down a SIP investor automatically ends up buying more units and vice versa. This feature of SIP creates exceptional wealth in the long run. In fact, steeper the downturn, better are the returns. Though Simple, but SIP is a very powerful concept.
How to Start SYSTEMATIC INVESTMENT PLAN (SIP)
- Check your KYC compliance. If you are not KYC compliant, Our team will help you complete your KYC formalities.
- Choose an amount you wish to invest. Also, identify the financial objective for investment. You may even invest to save tax, but the wealth created can be used for your child’s higher education.
- Our team will assist you with identifying your financial objectives recommend best-suited schemes to accomplish those objectives.
- Choose a date for investment. This is the date on (or after) which, your account shall get debited with the SIP amount. Fill up the form and our team will do the rest.
- Use features provided by our team, like online portfolio viewe etc to regularly monitor your funds. Your RM (Relationship Manager) will update you on changes if any.
Key features of SIP
- Investors can stop a SIP anytime. It normally takes 30 days to start or stop a SIP
- You can increase and decrease the amount of SIP as well. This done by stopping the existing SIP and starting a new one with higher or lower amounts.
- You can change the bank for auto debits.
- You can change the SIP dates as well.
SIP – Everything you Need to Know
In simple words, Systematic Investment Plan, popularly known as SIP, is a method of investment in mutual funds which allows you to invest a fixed amount at regular intervals. You can select the best investment plan and the periodicity of investment according to your convenience. SIPs help to achieve the long-term financial goals by putting a certain amount of money systematically in the best SIP plans which is selected by the investor. Through online SIP, you can invest, withdraw, and track mutual fund investment at your fingertips, which makes it the most user-friendly investment strategy.
If you choose the SIP investment method of investing, then a fixed amount is debited from the concerned bank at the selected date of every month through ECS or post-dated cheques provided by the investor. The amount is invested automatically in the selected scheme every month. A variety of funds are available for retirement planning, child marriage, child education, and many other specific purposes. Systematic Investment Plan helps the investors in bridging the gap between savings and investments. As savings are not enough to suffice the financial goals of the clients and equity investments are way too risky for ordinary people. Thus, these are the way through which a layperson can fulfill his dream by investing in equity, debt, or any other avenue and earn the equivalent returns. As a client invests small amount regularly, hence it becomes easier for them to spare a lesser amount as compared to the single-time investment. The investor can receive multiple benefits over different investment strategies by investing in a variety of best performing plans in India.
SIP Online : Its Benefits
Systematic investment plan has the upper hand over any other investment methods due to multiple benefits. Various advantages that can be grabbed by investing in SIPs are described below:
- Power of Compounding: Investing regularly for a long-term via SIP investment mode helps you to avail the benefits of compounding as the returns earned periodically are also invested along with the monthly SIP amount. This technique allows your money to grow exponentially in the long run. A small amount regularly invested in mutual funds online provide much better returns than one-time investment.
- Rupee Cost Averaging: The amount invested allots you the mutual fund units at their current market price or NAV. So when you invest via SIPs, some units might be bought when the market is low, and some will be purchased when it is rising. Due to this, the overall investment will be the averaged, and no massive loss will be incurred. It benefits the long-term investment to a greater extent.
- Burden Free Investment: These investments go lighter on your wallet because you have to invest a small amount on a monthly basis. Hence this investment will not impart a financial imbalance, unlike other investment methods. In online SIP, the amount can also be auto-debited which saves the effort to deposit every month.
- Irrelevant to Market Timing: Investment in the mutual funds helps you to invest without worrying about the market volatility. In a fast-paced era like this, where time is the most valuable asset of every individual. This route of parking money saves the time and effort to invest precisely in mutual funds.
- Makes you a Disciplined Investor: This help you to manage your finances in a more disciplined way by making you invest every month. The option of automatic payments is also available to you so that you can invest hassle free. It will allow you to build up enormous wealth at a slow and steady pace.
- Opportunity For Everyone: It allow the investor to invest a minimum amount of as low as Rs 500. Due to which any category of investor can grab all the benefits. It is the least amount that one needs to invest, compared to any other investment options.
All these advantages help you to attain your financial goals in the most beneficial manner. So, it is better to start investing at an early stage to achieve your financial goals on time.
Why Is Online SIP Investment Better than Other Investment Methods?
Investment in mutual funds can be made either with SIP or lumpsum online. The systematic investment plan is depositing a fixed amount periodically while lumpsum is more like a manual investment that can be done according to the convenience of the investor. For example, if you have to buy a car, there are two options to pay for it. Either by cash or EMI. Similarly, mutual funds also give two different options to invest, but in this case, systematic investment plan is considered more beneficial in many ways. If you are new to the mutual funds’ industry or if you don’t have enough time to track the upcoming ups and downs of the market, SIPs are a blessing for you.
With the lump sum investment, the investor is unable to grab several benefits which are described above. Apart from the discipline in investment, features like rupee-cost averaging and power of compounding are also left out in lumpsum investment. The investor needs to do an in-depth analysis and time the investment precisely to generate healthy returns. You can save yourself from this hustle and bustle by choosing SIP investment.
SIPs are often compared with recurring deposits or RDs, in which, it have always proved out to be a better option. Although both of them are a conventional saving mechanism, RDs turn out to be demotivating in terms of returns provided. As far as SIP plans are concerned, it is not a scheme in itself like RD, but a method to invest in any of the schemes. The returns from mutual fund investment depend on the scheme in which you invest through it. For example, if you invest in equity-oriented schemes through online SIP, then you might get copious returns while a moderate return will be generated through a debt fund. In systematic investment plan, the returns are subjected to market risk but are considerably better than that of RDs. The returns generated in RD are fixed and stable but are not even close to the systematic investment plans returns. Thus, it is quite beneficial in terms of returns as well as features when compared to RD.
Systematic Investment Plan – Working Procedure
Online SIP has now become a part of the financial schedule for many investors. But, many of them are unaware of the working procedure followed by SIPs. Before actually moving forward towards investing, you should know how your invested amount is materialised into beneficial returns for you. Investing in it is carried out through a systematic and continuous process. Every installment, which are paid monthly, fetches you some units of the scheme which are worth the amount of your investment. The units are being distributed on the basis of NAV, which is the net asset value or the per-unit price of the scheme. The number of units received by every client or unitholder depends on the NAV. Hence, if NAV is high, then you get fewer units for your investment, while a lower NAV will give you more number of units for the same amount. Thus, one can say that systematic investment plans make use of the bullish as well as bearish market conditions.
The Perfect Destination to Invest
After considering the advantages involved in SIP investment, you might need a perfect platform to invest in mutual funds, and if you are reading this, you are at the right place. There are multiple reasons to why you should choose My SIP online above any other online investment platform.
We have partnered with all the prestigious AMCs in India within the shortest span since inception. 19 prestigious AMCs have come forward to joining hands with us, who have rolled out thousands of mutual fund schemes and have helped us enrich our bouquet of plans. Because of the detailed research and up-to-date technical support, we have come up as the fastest growing platform to assist investors in the optimum enhancement of their wealth-systematically, as well as, securely. The clients can trust our platform undoubtedly for mutual fund investment as only the most reliable AMCs have been incorporated into our website. Along with providing various options to the clients, we reciprocate trust and reliability to them by providing bank-level security through safe and secure gateways.
The success of investors who have invested with us is the result of cohesive dedication and diligence of investment advisers, web developers, and the highly motivated staff. We are always focused on helping you invest in mutual funds in the easiest possible manner.
Major Favorable Features of Our Services Are:
- My SIP online contains a list of mutual fund schemes which are updated on a regular basis which enable the users to make the best use of their money.
- We have a team of financial experts, who recommend the best online SIP plans after thorough research for the ease of our customers. Clients can easily choose from the exhaustive list of mutual fund schemes.
- An entirely innovative feature of a customized portfolio is available, which enables the clients to invest in schemes according to their needs.
- A handy tool, known as SIP calculator is available for simplifying the calculation of returns where investment is made through systematic investment plan.
- A plethora of funds are separated and categorized into various particular categories on our website to complement investors’ specific needs.
- Easily navigable dashboard is available with convenience to see the latest transactions and follow up all the investments anytime through any device.
- The most recent market news and updates along with complete awareness of the upcoming funds are provided which makes it easier to choose the most lucrative scheme according to the current market conditions.
- No additional amount is charged for signing-up, personal advisory, investment, and transaction in the mutual funds.
- The data is transmitted in encrypted format to ensure security and resistance from hacking.
- Certified Financial Advisers (CFA) and experienced analysts can be reached through chat, call, and email anytime for proper assistance regarding mutual fund investment.
SIPs Are What You Need Right Now
SIP is a method which will adjust with any of the schemes which you pick for parking your surplus money. It implies that the clients are free to choose any plan and can enjoy the freedom of having a systematic investment plan as their medium to invest in. The scheme can either be equity, debt, or liquid; the investment methodology remains the same. It is a mechanism which will not only inculcate the habit of regularised investment but will also contribute towards building a considerable corpus with smaller amount sacrificed at predefined intervals.
Online SIP allows you to fulfill various financial goals. Whether you aspire to amass wealth, enjoy your post-retirement life with ease, or plan for your child’s future while sitting in the comfort zone, maximise the profits out of your investments within a blink of an eye. They have also made tax-saving more comfortable and convenient than ever before. The top plans have made it possible to invest and attain a growth perspective easily. The team of professionals at Investmentsahihai is always on their toes to guide you to invest in the best mutual funds and boost up your earnings to provide excellent returns. It not only facilitates you to finance but also eliminates the possible risks of fraud or treachery which are quite common in the offline mode. You should now wave off all your worries and take up the online SIP option.
Buying SIP online will save your time, effort, and money. All the funds available for online investments are visible in one place. Your dreams are our responsibility, and we are committed to not only delivering the services of a believable mutual fund distributor but also creating wealth by prescribing the systematic investment plans online that will meet your financial aims. Our tools are unique in the sense as they pick out the top investment plans and strategies for you, and build a customized portfolio to offer a convenient and time-efficient investment option. You only have to mention your details and our experts will analyse and advise you the most relevant options; the only thing that you need to do is to click on ‘Invest Now’ and begin your journey towards financially successful future.