The Complete SIP Guide

 

Just decided to take the first step towards a secure financial future? Confused where to begin? The Incomet SEP can be a great start! However, in case you are running short of time to invest in the best stock market course in India then SIP could be a great beginning step!

 

What Is An SIP?

The popularity of SIP of Systematic Investment has greatly surged over the past few years. AMFI’s “Mutual Fund Sahi Hai” campaigns have done wonders for popularizing the concept of investing in mutual funds. SIP plan is a monthly or quarterly investment in a mutual fund of your choice. Being diligent and persistent with SIP investments ensures that you are saving your capital from market fluctuations over a course of time.

SIP is NOT a mutual fund scheme but a TOOL to ensure that you invest in mutual fund schemes regularly over time. Being regular with SIP makes you stagger your investments strategically in mutual fund schemes over a period.

 

Are SIPs Better Than Lump Sum Mutual Fund Investments?

Most Mutual fund advisors recommend SIPs over lumpsum investments in mutual funds. This recommendation is based on the fact that it is better to stagger investments over a period rather than catching the market at a certain level. It is also the preferred medium for salaried investors.

 

Why Should I Invest Through an SIP?

This is something only you could answer. Your investment goals should always be crystal clear to you! Different people start SIPs for different goals, understand this difference and see what works the best for you!. A crystal clear goal stops you from being distracted by short-term desires that chunk away from your savings!

Regardless of what your goals via the SIP investment are, SIPs can act as a great tool to discipline your life. Once you develop the habit of investing in SIP, you will see yourself saving more money each month since the investor in you wouldn’t like anything to go to waste!

 

How Much Should I Invest Through an SIP?

Just how why you should invest should be clear to you, how much should you invest is also something you should be super clear about right from day 1. First and foremost, see what amount can you set aside for the purpose of investing through an SIP, you may try out our money-saving challenges to see how much can you actually set aside each month! Apart from this, you should also take any future expenses into consideration apart from your existing EMI payments and expenses.

 

How Can I Invest Through an SIP?

 

For this, you have several options!

 

  1. Fintech platforms: With Digital India improving its digital penetration every single day, a lot of new-age platforms have shown up that do KYC within their platform itself and begin your investment journey seamlessly.
  2. Mutual Fund Houses: Visit the website of the asset management company to get their KYC done and start your SIP with them. This process also saves you commission that otherwise goes to the agent.
  3. Demat Account: You can start your investment journey with a Demat account however Demat accounts often come with annual charges.

That’s it for this blog by Incomet. Stay tuned to this space for more on SIPs & Mutual funds!