Investing in mutual funds has many benefits. They give you many options to choose from, which let you buy a mutual fund plan based on your risk taking capability. There are debt mutual funds, equity mutual funds as well as tax saving mutual funds.
Even among the equity mutual funds, you can choose to save in funds with varied risks. This means that with so many options investing into mutual funds is indeed lucrative. You can either choose the Best SIP investment plans or reap the best benefits out of it.
Systematic Investment Plan or SIP- How to Invest In SIP?
SIP or systematic investment plan is a great way to start investing in mutual funds. Firstly, it lets you invest in the funds every month with a smaller amount. This saves you from the burdens of arranging for a huge amount at one go to invest in mutual funds. This, thus, lets you be disciplined and at the same time, you can choose to invest as little or as much as you want each month. You can set aside a part of your income to put in the mutual fund and the amount gets debited from your account directly.
The other advantage of investing in mutual funds through the systematic investment plan is that it helps to spread risk. For a few months, stock market may be high and this means that you get to buy your units at a higher price. On the other hand, foe a few months, the stock market may be bearish or in a correction phase. This lets you buy the units at a lower price. This, in turn, lets you spread your risks and helps to generate better returns.
Today Systematic Investment Plans Are Very Popular – How to Open Sip Account:
Investors are accepting this method of online SIP investment investing into mutual funds and this has made SIP plans very popular. The SIP lets one invest in the market periodically. But even after the flexibility and the ease that it provides, some investors are still not clear of its benefits. The main concern that one faces is how to go about starting a SIP.
Understand SIP Investment and How To Do It Online:
A SIP is a simple way to invest in mutual funds regularly. You can choose the frequency of investments. You get to choose the amount and the period, i.e. daily, monthly or weekly.. This helps to average the purchase price and increases the return on investment. It also gives the investors discipline in investments.
Starting a Mutual Fund SIP Plan
Today the best part about starting a systematic investment plan is that you do not have to go anywhere. All the formalities can be done at home itself. To start a plan all that you need is a computer and an internet connection.
Get the Documents that are required
To begin with, you need to get the required documents that are needed to start the SIP plan. This includes your pan card, address proof, photograph, etc. The details will be mentioned on the website. It takes just a few minutes to complete the procedure online.
You need to be KYC Compliant- How to Start Investing in Mutual Funds Online:
‘Know your customer’ is mandatory and you need to comply with it. This is important to invest in mutual funds. To be KYC compliant you will have to enter details like your name, date of birth and other personal details asked for. This has to be done just once and you can then invest in varied mutual fund schemes using this KYC. You will have to upload the soft copy of your identity proof to complete the process. There will be a scheduled video call to check about your presence.
The KYC done using AADHAR card is a simple process and here you will not have to go through a video call.
Starting the SIP Online- How to Invest in SIP?
Once your KYC is done online SIP calculator you need to visit the online website of the fund house from where you wish to purchase the SIP. There is a ‘Register Now’ or a ‘New Investor’ link, which when clicked will want you to fill in a few details. You will have to create a username and password for SIP online. Also, you will need to enter your bank details and set a monthly debit amount, which will be debited from your account. Then log in and choose the plan that you wish to invest in. You also have the flexibility to choose, which day you wish to start your SIP from.
Online SIP Mutual Fund – Now Just Takes a Few Steps
It just takes a few steps to invest and to start the mutual fund SIP plans online. The process is easy and safe and you can choose your plan carefully and then start your SIP account as per your convenience.