What is SIP?
Systematic Investment Plan is a tool that helps you to create long term wealth, by investing a small sum of money every month (or a fixed period of time).
How can I enroll in the systematic investment plan?
You can create MF SIP via Mobile app/ mPowered trading site or through your RM. Click here to login
Can I start SIP at any time or when the market is high?
SIP can be started at any point of the time and at any state of the market. The idea of SIP is to avoid timings of the market and start investing with a purpose. Due to rupee cost averaging maximum benefits are attained irrespective of the market's condition.
Is there any upper limits in SIP investments?
No, this is a misconception that SIP investments are only done in the case of small amounts. You can invest as much amount as you want, there is no upper limit to the SIP amount. Due to its compounding ability big investments can lead you to large wealth, so investing big amounts is rather a good option.
Can I miss an SIP?
Yes, you can. Many investors think that if they miss an SIP, then their account will be de-activated which is not the case. Even if you miss an SIP due to insufficient amount of balance in your account, don’t worry you can just pay it next month, and your SIP will continue as normal.
When you are starting with an SIP, don't think too much about the future. Even if you miss some of the SIP's due to financial crisis, it will be recovered in the next SIP.
In which mutual fund should I start SIP?
All mutual funds can accept both SIP and lump-sum investments. If you want to invest in both SIP and lump-sum on the same day you can do it. And if you already have a SIP account and wish to invest more amount in that, you can do that. A detailed portfolio of your investments will be available to you. If you wish to have a second SIP in the same fund you can do that too.
When can I withdraw the amount if I have invested in a ELSS?
If you had invested the amount in tax-saving or locking period, then minimum time is 3 years for the redemption of the amount. So consider it as a one-time investment at periodic intervals. Each of your funds will be locked in a period for 3 years from the date of your purchase. If you have started to invest in SIP for a fund from 6 July 2015, then you will be able to redeem the units purchased with your first investment, only on 6 July 2018.
Will I get any intimation on the SIP orders being placed in my account?
You will be intimated on the each transaction through SMS & email alerts. Alerts will be on the following actions:
On the successful registration of the SIP
SMS/email alerts before the execution date(One/two day before)
Alerts on the cancelation of the SIP orders.
What is Rupee Cost Averaging (RCA)?
When the investment is done at regular intervals, different units will accumulate according to the market level. When an equal sum is invested every month, then the amount will be averaged based on different Net Asset Value (NAV).
For e.g. if you have invested in SIP, and you have 15 NAV in the first month and 13 in the second month, then its overall average will be 14.
What is the timeline to register SIP in BSE & NSE?
BSE takes 30 days & NSE takes 31 days to registered a SIP.