Why to invest in SIP and How to invest in SIP?

[Sanjay Barve]

At this time, when our economy is down, I just wanted to know is it suggested to invest or not in the mutual funds.

 

[Soh325R]

SIP is considered to be an alternative to RD of a bank or Post offices. SIP is the best way to invest in the stock market. Currently risk free rate (rate on RD and FD) is near about 6.5%. This is very less as compared to returns that are offered by Mutual Funds. Generally it is better to keep your money in MFs for 5 – 10 years as MFs are long term investment instruments. Moreover there is no TDS deduction unlike RD and FD. And exit load (Penalty in case of RD and FD) is very less after 1 year and nil if units are redeemed within 1 year. SIP helps in investing in a disciplined manner without worrying about market variations.
To start investment via SIP you can register online on any of the website of Fund house. It will take you to the simple login process. Follow the onscreen instructions and then choose a scheme you want to invest into. You can choose the start date of the SIP and every month on that date money will be debited from the linked bank account and units will be credited into your folio.
OR you can invest in SIP through stock brokers or bank based brokers as well. Almost every broker offers mutual funds.

 

[Logical Trader]

Mutual Fund SIP is considered the safest option while investing in the share market. If you do not want to burn your hands in the stock market, then surely go for an SIP.
Also, it is very easy to invest in SIP. You can register yourself on the website of the fund house or can go to a broker as well.

 

[nehapen7]

SIPs assist you with averaging your buy cost and amplify returns. At the point when you contribute routinely over a period regardless of the economic situation, you would get more units when the market is low and fewer units when the market is high. This midpoint out the buy cost of your mutual fund units. The objective of any SIP speculation is to guarantee that your portfolio gets the ideal danger, for example as per your resilience, and furthermore start broadening across different resource classes. Expansion is fundamental to acquire the greatest profits from your ventures. You ought to guarantee that the mutual fund you chose to put resources into meets the accompanying standards:

1. The total asset size of the mutual fund is critical.
2. The mutual fund has been existing for a good period, say 5 years. The more drawn out the period, the better
3. Always attempt to pick a presumed mutual fund house
4. Your SIP speculations ought to be related to your bank.

Start investing with IIFL Securities - https://mf.indiainfoline.com/MFOnline/Home?ReturnUrl=/MFOnline

 

[sunilkatoch]

@ nehapen7 Here are some of the benefits of investing in SIP.
1. It inculcates the discipline of regular investment
2. Highly convenient
3. Rupee cost averaging
4. SIP comes with the power of compounding
5. One is able to own more stocks in small quantities
Investing in SIP is extremely easy and can be conveniently done using a demat account.

 

[shahsandy]

SIPs assist you with averaging your buy cost and augment returns. At the point when you invest routinely over a period regardless of the economic situation, you would get more units when the market is low and fewer units when the market is high. Here are the steps to Invest in SIP in India: 1-Understand your Risk Appetite and the Objective of Investment. 2-Choose a Mutual Fund for your Investment. 3-Select the Date of SIP. 4-Decide on the Duration of SIP. 5-Decide Whether you need to Invest Offline or Online.

 

[Savinay]

I have selected below MF;s for monthly SIP of 5000/-. Please suggest any changes. Investment for 5yrs and above.
- Kotak Small cap - 5k
- PGIM India Midcap opportunity fund - 2.5K
- Canara Robeco Bluechip Equity fund - 2.5 K
- Quanta Active fund - 5k
- Motilal Oswal Large & Midcap fund - 2.5K
- ICICI pru commodities fund - 2.5K
- SBI contra fund - 2.5K
- Motilal Oswal Nasdaq 100 fund of fund - 2.5k
- IIFL focused equity fund - 2.5K
- ICICI prudential Nifty Index fund - 2.5K

 

[HirendraRamamuthe]

When it comes to investing in the stock market, systematic investment in mutual funds (SIP) is widely regarded as the safest option. Go for a SIP if you don't want to get burned in the stock market.

The first step is to open a SIP account. On any of the Fund house's websites, you can sign up for an account. You'll be taken to a page where you can easily log in. Once you've followed the onscreen instructions, select the investment plan that interests you. You can choose the start date of the SIP, and money will be deducted from the linked bank account and units will be credited to your folio on that date each month.

Stock brokers and bank-based brokers can also be used to invest in SIPs.

 

[Kusum Sarkar]

SIP is the safest form of investment. If you will systematically invest in SIP for an extended period, you are going to get benefits of compounding. You can invest in SIP through stock brokers & banks. I personally prefer to invest through a stock broker and using finvasia for that matter as it’s a zero cost broker.

 

[Shweta99]

• As a beginner one of the best and easy ways is to start investing in mutual funds through SIP. A Systematic Investment Plan (SIP) is a mode of investment for mutual funds in which investors make regular, automated contributions periodically. With SIPs, you can plan your investments to achieve your financial goals over the long term.
• For Example- You can start investing with a very low amount also like 500rs. Each month for the next 2 years or 5 years with a mutual fund and automate your contributions.

• Steps to invest in SIP:
• STEP 1: Understand your Risk Appetite and the Objective of Investment
• STEP 2: Choose a Mutual Fund for your Investment
• STEP 3: Select the Date of SIP
• STEP 4: Decide on the Duration of SIP
• STEP 4: Decide whether you want to Invest Offline or Online
• STEP 5: Stay Invested till the End of your Investment Period

For further information, you can check financial websites like Navi, Paytm Money, Biz finance and more.