You can achieve your dreams only if you work towards them. Similarly, you can build your wealth only if you continuously work towards growing it. A Systematic Investment Plan (SIP) helps you do just that. With SIP, you can invest a fixed amount in mutual funds either monthly or quarterly over a period of time. With the power of compounding and rupee cost averaging, you can reap huge benefits in due course of time. So, start investing through SIP today and work towards achieving your dreams of stabilising and growing your finance.
How to invest in a SIP mutual fund ?
SIP or Systematic Investment Plan is a method of investing a fixed sum, regularly, in a mutual fund scheme. You can buy units on a given date each month so that one can implement a saving plan for yourself. The biggest advantage of SIP is that you need not time the market. With SIPs, every time is the right time. This is because, in the long run, all the losses and negative returns will be negated. Rather than youtiming the market, investing each month will ensure that you are invested at the high and the low also making the best out of every opportunity.
You can invest in a SIP mutual fund with a pre-determined fixed amount in a scheme every month or quarterly, depending on your convenience through post-dated cheques or other means. For this, you need to fill up an application form and a SIP mandate form, on which you need to indicate thechoice for the SIP date (on which datethe amount will be invested).Subsequent SIPs will be auto-debited through a standing instruction. You can submit these forms to the office of the Mutual Fund / Investor Service Centre or the nearest service centre of the Registrar & Transfer Agent.
You don’t have to do much to start investing in SIPs. After you get your KYC or Know your Customer verification done, all you need to do is choose a fund. You also need to specify the amount that will be debited from your account to the Mutual Fund Account every month. This amount has to be in multiples ofINR 500. Once you give standing orders to your bankwith the details of your bank account that is linked, the money will be auto-debited every month.
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