Things to know before you start your SIP

SIPs which stand for Systematic Investment Plans have recently grown as one of the most preferable investment option. The recent investment trends in SIP shows good growth pattern in India. About Rs 20,000 crore is the net inflow by the way of SIPs, a huge part of which comprises of monthly SIPs. The trends are increasing, which shows that the plan is accepted by masses. SIP is a flexible scheme of investment and you can choose any mutual fund to start your SIP. But before choose any fund for investment, you need to check their risk profile, paste performance, credit ratio and return value. 

SIP India

How does SIP India work?

The introduction of SIP was aimed to channelize the savings of individuals towards investment. Let us now understand how these mutual fund options work in India.

• So the first thing we need to know is that the SIP India is based on the principle of regular investments. You can choose any amount starts from INR 500 to start your SIP and you do not need to take any financial burden for this investment. 
• The principle amount that you have chosen to invest is debited from the assigned bank account at the end of the chosen interval of time.
• The money is invested in a particular type of mutual fund which has been already chosen by you previously.
• The investment is basically that the certain units of a particular fund are allocated to you. These number of which will depend upon the market value of the fund. 
• SIPs provide you with the flexibility of investing more when prices are less and vice versa. These cover the risk of market fluctuations and thus are more secure option than the other investment plans. All you need to visit the official website of Kotak Mutual Fund and you can easily start your SIP by entering few details such as phone number, PAN and email id. 

Different types of SIPs to invest in: 

There are various types of SIP plans available to choose from. Each financial institution has their own plans; here we will stick to Kotak Mutual Funds. 

1. Kotak Standard Multicap Fund- This is an open ended equity scheme aimed to generate long term capital appreciation from a portfolio of predominantly equity and equity related securities.

2. Kotak Tax Saver- It is open ended equity linked saving scheme aimed to generate long term capital appreciation from a diversified portfolio.

3. Kotak Emerging Equity- It is an open ended equity linked growth scheme same as the others only difference being that these invest in mid and small cap companies.

There are other companies as well like ICICI Mutual Funds and HDFC Mutual Funds providing wide range of schemes. Kotak Mutual Funds have recently launched Kotak Balanced Advantage Fund which is an automatic portal which takes care of market fluctuations and hence gives you a balanced growth.

A Simple Guide To Systematic Investment Plan – How To Invest In SIP Investment Plan

The right kind of investment that people can make today is to invest in SIP or Systematic Investment Plans. They are extremely safe and convenient. While people still like to invest in stocks and shares, the SIP investment is a much more stable and safer way of gradually building your wealth. It doesn’t involve as much anticipation and hard work as stocks. It only calls for periodic investments of a particular amount. 

How To Invest In SIP Investment Plan | Image Resource: Shutterstock.com

In the last couple of years, people who have chosen SIP investments over other forms of investments have significantly risen. The reason is people prefer dependability and peace of mind. They can sit at home and have investments made by auto-debit features of the SIP accounts. This article aims at answering the popular question of ‘how to invest in sip investment plan’.

The procedure of investment – SIP explained

While there is a method that demands you to take documents and appear physically in front of the mutual fund company, eKYC is also an option that a lot of people avail. This is probably the simplest of all the methods by which you can open an SIP account. The steps are as follows:

1. Providing information – Any kind of account opening demands basic information of the account opener. It is needed for validation and confirmation purposes. Opening an SIC is no different as it requires your basic details like your name, address, contact number, date of birth, sex, etc.

2. Documents – Simply filling in the details won’t suffice. There needs to be official documents that can back up the data. Hence, the need for documents. The documents that you will need to open an SIP account with any mutual fund company are PAN card, Aadhar Card (optional), address proof, passport size photograph and other such documents. 

3. Video Call – Since this is an eKYC procedure, it can be carried out while you are at home. But the in-person confirmation cannot be done in this process. Hence, the video call suffices for the in-person confrontation. They check for your existence and confirm the photograph submitted. The PAN card and other submitted documents need to be kept at hand for visual confirmation. 

4. Signing up - The last step is to register with the chosen mutual fund company by signing on to their official website and doing the needful (filling in the details and choosing an appropriate plan).

For people wondering how to find a sip investment plan to invest in - these are the four steps that you must complete in order for you to open a SIP account for investment in a simple and hassle-free way.

How To Choose The Best Mutual Fund To Start SIP?

Capital investments often require a lot of time and research. Investing in a mutual fund via SIP has its own benefits. However, one needs to keep various factors into consideration while investing in stocks. 

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If you are planning to invest in best mutual fund to star sip, you will definitely want your money to grow at the fastest possible rate, while being less susceptible to investment risks. Following factors should be considered before you select the right plan. 

• Investment objective.
• Risk taking appetite.
• Tenure of the investment. 

After you have defined the above goals another important thing is know how you can invest in an SIP. Sip investment plans can be done by two modes namely, online and offline. If you plan to go for an online mode it is essential that you have all the documents ready before you start. One has to sign up one the mutual fund site and follow steps provided by the robo-advisory platform. If you are selecting an offline mode initially you have to fill the common application form and provide a mandate for the same. However, in both the cases it is mandatory that you are a KYC compliant. 

One should make sure they select the best mutual fund to start SIP. To select the best mutual fund one should follow the following steps: 

1. Always carry out research about the competitive funds available in the market.  There is no point in buying a similar fund at higher cost. Make sure you have compared all the parameters before you make a decision.

2. Knowing about the mutual fund house is also essential. One should make sure they have researched about the mutual fund house well. It is important to learn about their expertise and top mutual fund investment portfolio. Make sure you ask the essential questions to the team like their crisis handling capacity and schemes provided by them. The mutual fund house is a crucial factor for investment because your investment is totally in their hands.

3. Fund manager is an important part of the house. Make sure that he has the required expertise and a best team. Also, analyze their decision making skills while market crisis. A good fund manager provides best services during market fluctuations also so it is important to choose the right person while investing in the best mutual fund to start sip.

Invest Into SIP To Gain High Returns After Investment Tenure!

Imagine a situation where you wanted to buy a dream car, but just don’t have enough to pay the entire amount and taking a loan will put a dent in your finances as you have to repay a high amount every month with interest.  Instead of taking a loan, how about using savings gained by investing in mutual funds to buy the car. 

SIP | Image Resource : Shutterstock.com

Would not that give necessary boost to achieve your dream of getting a fabulous vehicle in the shortest possible time? Check out top mutual funds in the market and invest every month an amount that is lesser than what you would be paying for a five year car loan with interest. In just a year, you would have saved enough to pay up at least half the value of the car, while the remaining amount can be financed through a small loan which carries a low interest rate. 

About SIP 

Systematic investment Plan or SIP is your means to getting into a sound financial position. If you are already not into the habit of setting aside a small amount of money from your salary every month and putting it aside for future needs, it’s time to start now with mutual funds investment schemes. 

The key benefit here is that you set aside a small amount every month to which interest is added on a monthly basis. The interest gets compounded so at the end of the investment tenure what is gained is a large amount, which can take care of big financial needs. Instead of investing into an LIC policy or bank fixed deposits, putting money into mutual fund helps gain more money and also makes you financially sound.  

Kotak Mutual funds is highly attractive as it offers high interest on the invested amount. Check out the many funds into which you can your money such as debt, tax saver, hybrid, equity etc. It offers much equity and debt funds which give different types of returns. You can opt for a fund with open-ended policy else one that has three year equity lock in period.  

You can also look into Kotak EFTs and Fund of Funds both of which offer attractive returns. Gain the maximum from investing into these mutual funds by opening an account online. There is an automatic deduction of investment amount from your account for the various funds that you have selected to put money into. 

How To Select The Best MF To Invest In SIP ?

With minimum capital investment and low market risk, SIP is the most preferred investment plan these days to create wealth future financial security. It can be weekly, monthly or quarterly in nature. In other words, investments can be made at different intervals according to the requirement of the investor. 

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However, one has to be careful when they decide to invest in a mutual fund via SIP. Selecting the right mutual fund is most essential and often can lead to risks if not chosen properly. Here is a quick guide to selecting the best mf to invest in SIP.

Here are a few steps you should follow when selecting the best mutual fund to invest in SIP.

• Before selecting the right mutual fund one should be sure of their investment objective. While one often invests with the aim of gaining better returns, time period is also an important factor to consider. It is said that the investor’s risk appetite defines his portfolio and thus accessing the investment objective is highly essential. 
• Study the risk return parameters well. While the prime goal of an investment is to produce higher returns on investment one should make a comparable study about risk as well as return factor as they both go hand in hand with capital investment.
• Compare various funds and check their performance for similar parameters.
• Pay attention to the time period of the investment and also study the short-terms as well as long term performances.
• Fund management is also another factor one needs to keep into consideration. Since the performance of the mutual fund is totally based on the fund manager and his team, hence it is imperative for an investor to hire only such individuals. Thus selecting the right mutual fund house with excellent fund managers is important.
• One should also check the cost of the mutual fund. It often turns out that two mutual funds have same scheme and thus is it not wise to buy a mutual fund with higher cost. 
• One should also pay attention to loads and recurring expenses when selecting the best mf to invest in sip.

Thus it is very important to study the above parameters before making the right choice. This is because only then you will be able to reach your long term financial goals.

Choose The Best Company To Invest in SIP – Reach Your Financial Goals Faster!

If you are someone who wants to reach their financial goals faster, then investing in a systematic investment plan is the best way to go. A systematic investment plan is an easy and an apt way to invest in a mutual fund scheme. It allows an investor to buy units every month on a certain date every month which helps in implementing a saving plan. An investor can choose the amount that he would want to invest at every time interval (monthly, quarterly or annually). One of the pros of investing in a SIP is that it instils the pattern of saving in the person. This helps them to build a fund for their future. 

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The earlier you start investing in a SIP account, the better benefits you can reap from it. The best company to invest in SIP is that one which helps you decide the best kind of mutual fund you should invest in for your long term benefits. One of the great things about SIP is the fact that there are no complexities when you want to invest in a mutual fund. The amount that you choose to invest will be debited each month from your bank account and it will be invested in the mutual fund that you choose. 

The companies that you choose to invest your mutual funds in will help you decide which might be the best one for you. Broadly speaking there are three kinds of mutual funds – LargeCap, SmallCap, MidCap. LargeCap schemes have less risk and gives you less returns at the end of the investment period but if you want to get increased returns then it is best for you to invest in SmallCap since these mutual funds consists of high returns along with a high risk factor as well.

Best Company to Invest in SIP – Benefits For Investing in a SIP

One of the important reasons every investor should choose to invest in a SIP is because of two main factors – Rupee Cost Averaging and the power of compounding. When an investor invests in an equity mutual fund, then it allows him to buy more units when the market is at a low and vice versa. The power of compounding allows the investor to get a large sum of money at the end of the investment period. One of the best companies to invest in SIP is Kotak Mutual fund. Since we always advice our clients the best fund that would fetch him the best results. So what are you waiting for, choose the best company to invest in SIP and attain your long term financial goals in no time.

Best Mutual Funds for SIP: Let Your Savings Thrive!

The benefits of investing in mutual funds are many, which is why investors make it their preferred mode of saving. If you wish to have a profitable investment, then following a disciplined saving method is a must. SIP – Systematic Investment Plan is one such mutual fund saving scheme that helps you follow a disciplined approach to savings. But, the problem comes in choosing the right SIP for your investment, given the plethora of choices. 

Best Mutual Funds for SIP | Image Resource: Shutterstock.com

Best Mutual Funds For Systematic Investment Plan – At a Glance 

Novice investors who are new to the process of mutual funds must have an in-depth knowledge about the types of funds available in the market. It is not advisable to just choose a mutual fund saving scheme and get started right away. Comparing the various plans beforehand will help you choose the best mutual funds for SIP. To avoid loss and have a stable savings, it is mandatory to note the market conditions in advance. 

For a beginner who is just starting to get a grip of mutual fund, Kotak Mutual Fund – SIP would be appropriate. The scheme is specifically designed for flexible saving options. In Kotak Mutual Fund for SIP, customers have the choice of deciding the investment amount based on their future savings goal. In order to get a regular benefit, it is mandatory to invest for at least 6 months or above. This will help clients get a good amount as benefit irrespective of the fluctuating markets. 

Benefits of SIP: An Insight 

The internet provides options where you can calculate the SIP amount based on your future returns. This is indeed a blessing in disguise for beginners as they can save money in a systematic manner. Through SIP, you can have various benefits that include 

• An orderly saving method that helps to get the desired financial benefit. 
• Power of compounding that allows you to boost your investment at a given time period. 
• Flexible investment options that allow clients to decide the initial amount themselves. 

Finding the best SIP scheme can be done within a short period of time. All you need to do is compare the benefits offered by various mutual funds for SIP and choose the one that will suit your requirement. Investors can also check the past performance of the scheme and then make the decision. Before investing, is it a must to understand that mutual funds perform according to the current share rates. Understanding the ups and downs of the market will help you make a clear decision about SIP mutual funds.