Talking about investments, there’re a lot of investment plans accessible in the market but SIP mutual funds are one plan that is considered to be the best among all other investment plans available.
Understanding More About SIP!
SIP commonly known as Systematic Investment Plan is basically an investment mode with the mutual funds. It’s the long-term investment plan normally with the term of ten to five years. A person can invest money periodically that can be monthly and quarterly. Normally, when we invest in funds, there’s a certain risk factor involved and that depends on a market. However, with SIP there’s no such risk. No matter how is the market condition, you will get a particular amount at an end of your tenure that you expected to get against your monthly and quarterly payments.
Starting Your SIP
You can start your systematic investment plan any time in the open-ended MF scheme. For that, you will just have to fill up an application form with SIP mandate & submit this to a point of acceptance. The bank takes around 10 - 30 days for registering their customers SIP terms and to start it –
• The first thing you have to do is choose the mutual fund scheme that is suited for your requirements, financial goals, investment objectives, and all.
• Then fill in an Application Form or SIP form very carefully mentioning your scheme name and other details.
• If your KYC isn’t done, then fill in a KYC form and apply.
• You can hand over your form in the mutual fund distributor office, relationship manager, agent or adviser or you can directly submit your form to the Registrar & Transfer Agents.
Suppose you think of doing SIP online. Then the process is very simple. You just have to log on to your respective fund house’s website. However, when buying the systematic investment plan mutual funds ensure you choose only the direct plans.
The author loves to give advice on investment, being in this market from a very long time. He understands that market very well and knows the ins and outs perfectly.