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. 

Best Mutual Fund to start SIP | Image Resource: Shutterstock.com

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. 

Best MF to invest in SIP | Image Resource : Shutterstock.com

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. 

Best Companies to Invest in SIP | Image Resource: Shutterstock.com

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. 

Important Steps To Invest In SIP Online

How to Invest in SIP Online | Image Resource: Shutterstock.com

With the commencement of new financial year, most of the investors must be looking for the best investing plans online. Well, SIP has got new beneficial scheme and plans all ready for 2018. If you’re not that much experienced in this field or have limited knowledge about the same, you would definitely like this post as we are going to discuss the step by step process of learning to invest in SIP online without much hassle. 

Well, the very first thing before starting a systematic investment plan, is that you fulfill your KYC requirements. It is a mandatory step to fulfill KYC in order to invest in SIP online. You would be asked to submit your address proof, ID proof and photograph. Not only this, but you will also be required to confirm your physical existence with the help of IPV – In-person Verification method. 

Steps to Invest in SIP online

Steps involved in how to invest in SIP online is simple. You just have to follow the steps mentioned below.     

• All Basic Detail: It is very important that you fulfill your basic details first in the online form such as your full name, DOB, contact number, present address and much more. For understanding how to invest in SIP online.

• Document Updation: After completing the first step, it is time to upload all required documents such as scanned copy of your address proof, PAN number and adhaar card number.  

• In Person Verification: Once the documents are uploaded and details are filled, it is mandatory that your physical existence is also confirmed. For this, you will be asked for a suitable time to connect via webcam. You will be asked to show your PAN card and Adress proof during this video call. Hence, keep them with you before connecting the video call. 

• Electronic KYC: If you have an AADHAR number, the procedure would become quite easy for you. An OTP will be sent by UIDAI in order to match the details provided by you with the details available in the UIDAI database. If you can complete the e-KYC via AADHAR, you won’t have to connect with them via video call. 

• Final Step: After all the steps mentioned above, you would have to visit the company fund’s website and create a new account. This will redirect you to a form which would create an online transaction account with the fund house. You need to keep your phone and cheque book handy as you will have to verify your bank account details and contact number via OTP. This way you will be ready to invest in SIP online.   

What Is A Systematic Investment Plan?

What is SIP (Systematic Investment Plan) | Image Resource: Shutterstock.com

While venturing into new market sectors, the greatest test one encounters is how to start investing into Mutual Funds. Mutual Funds have either an annual single interties rate or in customary speculations over some undefined time frame, however both of them are calculated on a daily basis.  This scheme has picked up a considerable measure of prominence particularly with the youngsters and the salaried class to help determine what is SIP (Systematic Investment Plan). 

SIP-Systematic Investment Plan

Indeed, even specialists caution that it is difficult to anticipate Indian monetary markets since one of the central point describing securities showcases in creating economies is their unpredictability. Subsequently, there is a lack of ability to ensure when the business sectors will enhance or when they will crash. Such unpredictability prompts venture weakness, and even keen market watchers lose cash exactly when they anticipated that would pick up. That is when the place, the idea of rupee cost averaging comes into play. 

The scheme works like a repeating venture of a settled sum, which gets charged straightforwardly from your financial balance each month on a fixed date. 

Accordingly, SIPs enable you to methodically invest a little amount of cash in Mutual Funds each month without your standard mediation. Apart from these, you can invest into Mutual Funds with a little amount of money each month without hampering your budget related liabilities excessively. 

The Advantages of SIP:

There are many points of interest of SIP over Lump sum too. To comprehend the same, you have to first understand the idea of Rupee Cost Averaging and Power of Compounding, alongside Discipline and Regularity. 

• Consistency of Investments 
• Comfort 
• Train
• Not heavy on budget 
• Easy to be managed
• Risk free investment

What is SIP Systematic Investment Plan is a magnificent apparatus where your good return is prepared from your investments. Rome was not built in a day and neither will your corpus.

Hence, Systematic Investment Plans or SIPs have turned into a basic piece of Mutual Fund Investment. It is anyway only a procedure of purchasing normal units. The advantages and favorable circumstances are many and subsequently, it has picked up prominence. 

With exceptional yields and assessment productivity, shared assets have turned out to be very well known and encourage you in making a powerful finance plan for yourself and your family. It is the most effective tool which can be utilized to upgrade the portfolio by customary speculations.

Good Sip Plans: Low Investment And High Returns Assured!

Good SIP Plans | Image Resource: shutterstock.com

Do you wish to invest low and gain high returns? Then, SIP plans would be the apt one for you. If you are a person wanting to earn profitable returns without taking much risk, then you need to opt for Systematic Investment Plan (SIP). Many investors take drastic decisions when it comes to the selection of stock and the price to choose. This is one of the crucial steps that should be taken with care as it may make or break the deal. There are many who invest without knowing the tricks involved and end up losing more than what they have invested. 

The stock market is a changing place where fluctuations are unavoidable. To gain profitable returns without having much loss, one must follow a standard investment process. If you are new to the field of mutual funds, then it is mandatory that you do a lot of research. There are many good sip plans that suit different categories of investors. Understanding these plans beforehand will provide you an insight on how the market works and how you can yield profit. For those  who are not the type of risk-takers, SIP mutual plan would be beneficial. 

Good Sip Plans: An Insight for Novice Investors 

Before exploring the various mutual fund options, one needs to know what are sip plans and how they are beneficial. SIP (Systematic Investment Plan) is a low investment plan that requires a fixed investment at regular intervals. One can invest amount as low as INR 500 and still gain potential benefit. By choosing a fixed amount over a couple of years, you can gain high returns irrespective of change in the stock markets. There are many reasons why one opts for sip plans. Some of the advantages of sip plans are explained below. 

• Flexibility – one of the main reasons why many opt for sip plans is the flexibility factor. Unlike other plans that are fixed, sip plans provide flexible investment options that come as a blessing in disguise for novice investors. In order to gain a good return, it is advisable to invest for a long period of time. 
• Rupee Cost Averaging – there is always a risk associated with market fluctuations. However, this will not be the case of sip as the investment amount is fixed and time-bound. You can change your buying options based on the current rate in the market, which in turn will not affect the investment as the amount if fixed. Further, you can balance the funds based on the current market situation and it will not affect the average cost per unit. 
• Compounding – another important benefit of a SIP plan is the compounding option. Since the investments are made at regular intervals, the compound amount will increase as time goes by. The more the number of years, the more the returns. This is one of the important points that make SIP a best investment plan for all types of investors. 
• Convenience – sip plans provide a lot of advantages as far as investments are concerned. All you need to do is provide instructions to your bank to debit amount from your account for sip savings. The process  is quite convenient and do not require any type of paperwork. Further, investors are provided with 24/7 help and support services, which is an added advantage. 

Why SIP Plans and how to start one?

Whether you wish to save money for your child’s education or for buying a dream car, you can do so at ease with sip. You can also invest for your child’s marriage, vacation, retirement, etc. Whatever may be your reason to save money, you can do this at ease with a proper sip plan. So how to start a sip plan online? Here are some basics to check out. 

SIP Planner – this is an online tool that will help investors calculate the amount they need to invest to gain the returns they desire. The first thing you need to do is provide your dream amount, the number of years you are planning to invest and the approximate returns. You will be then provided with an apt plan that will state the amount that you need to invest to gain the amount you need as returns. 

Starting SIP online: What You Need to Know 

Starting sip online is not a cumbersome task as one may think. It is a simple process that can be completed within minutes. The first step is to decide the amount of investment. Once you have come up with the number, then you need to go to step two. You need to calculate the number of years you need to invest the amount to gain the returns you want. Then, you need to select a date for investing in the sip plan. Last, but not the least, you need to check out all the sip plans and then choose the one that will suit your requirement. Some of the basic sip plans include – monthly, daily and flexible investment plans. 

Customers who have invested in a specific sip have the options to switch accounts later on. This is one of the advantages of sip investment plan as one can switch schemes based on their requirement. The process is quite simple and can be done at ease. There are also options where you can withdraw a fixed amount at regular intervals based on need basis. This indeed would help those who wish to gain a regular income. Sips are best suited for small investors who cannot afford investing a large amount of money. This is also a disciplined way of investment where the income is determined and so is the return. 

By completing simple bank procedures, you will be able to start sip right away. The first step is to proceed with the KYC (Know Your Customer) process. You need to submit some mandatory documents such as Aadhar card, Pan card, proof of address, photograph, etc. Once you submit the necessary documents, you will have to go through the in-person verification process. After verification, you can register for sip and start with the process. All these methods are simple, convenient and easy for any novice investor. The professionals will help you understand the process and provide support and help services as and when you require. So why wait? Choose the best sip plan today and make your dream investment! 

How Much To Invest In SIP?

SIP or Systematic Investment Plan is the key means to put money into a safe and reliable money growing ventures through which good returns can be reaped. The key benefit of SIP is that it offers so many types of investment opportunities, giving people the chance to put their money into various schemes through which it can grow and multiply in many different ways. 

Best SIP Plan to Invest | Image Resource: shutterstock.com

Types Of Mutual Funds

Knowing what type of funds are available helps to invest wisely into those funds through which your financial goals and objectives can be achieved.

• Money Market Funds - It is made up of short term securities like treasury bills, income securities, deposit certificates etc, gives low returns but a safe investment
• Fixed Income Funds - Made up of investments that gives fixed returns such as high yielding corporate bonds, government bonds and investment grade bonds. 
• Equity Funds - They comprise of stocks, have short investment period, carry high risk, but grow faster than other funds. Examples include value stocks, small-cap stocks, income funds etc. 
• Balanced Funds - Made up of fixed income securities and equities, are more risky than fixed income funds but less risky than pure equity funds. Their purpose is to balance high returns against risk of losing money
• Index Funds - They track a particular index's performance and the fund's value is likewise affected by the index value. 
• Specialty Funds - Is made up of investment into specialized assets such as commodities, real estate etc. returns are good and investment risk is low to moderate
• Funds of Funds - Investment into funds that comprises of various other funds, enabling the investor to get greater choice on  how they can invest their money and multiply it

By looking into the general features of these fund varieties, you can decide what is the best SIP plan to invest. 

Tips On What To Check Before Investment 

By looking into funds that have different investment styles, you can gain good returns because even if a particular segment is not performing well, its low returns will be made up by others that are doing moderate to good in the markets. This feature also helps you diversify beyond just investment type as you can access more investment avenues. The best SIP plan to invest is one that is performing well now and also shows signs of performing this way in the near future. 

Before picking up any fund for investment, look into how its returns will help meet your specific financial goals. For example, do you want returns that helps meet financial obligations such as college expenses, buying car, meeting home renovation expenses etc else is the returns needed for retirement purposes. So look towards a fund that can resolve such needs. 

Check up on the risk of a fund and how much of risk you are ready to take on. For example, is putting your money into a portfolio that has dramatic swings alright or do you want a more conservative investment means. Kotak Mutual Funds offers investment options with low to medium risks through which attactive returns can be gained. 

Finally, look into how long you don't mind putting money into investment. Is the money invested required for immediate and pending financial obligations else can you wait for a long period of time till It gives back significant investment returns. 

Gain High Returns By Investing Into Equity Funds

You can maximize gains from SIP investment with a little amount by putting money into Equity funds. Here investment is made into different company shares but each have a different market capitalization. You can enjoy significantly greater returns from them than what is obtained from money put into fixed deposits and debt funds.  Check out Kotak Mutual Funds for the best returns in both short and long term investment periods. 

This form of mutual fund investment is ideal for those who want to invest just a moderate amount of money per month, are having long term financial goals and who are ready to take on a bit of risk in their investment decisions for the benefit of a high returns at the end of the investment period.  

Those who are new to investing should look into large-cap  equity funds which put money into top 100 stock market companies, which deliver good returns over the long period. Investors who are already aware of the mutual fund scenarios can put money into more diversified mutual funds, which have the benefit of high returns plus low risk. 

In equity funds, investor money is put into company equity shares in different proportions. Here about 60 percent of the fund is put into such shares and the investment style can be either growth-oriented or value-oriented. The remaining 40 percent is put into money market instruments money marketing and debt instruments, which helps to bring down fund risk as well. All the buying and selling decisions of this fund is done by the fund manager, who takes decisions based on market scenarios so that investors can gain maximum returns. 

Key Benefits Of Investing Into Equity Funds 

• Invest a small amount for a period of three years and gain good returns when the investment period culminates
• Investment can be made conveniently into various types of equity funds at a low cost, thus eliminating the need for huge money to make equity investments
• As money is systematically invested, returns are high and the discipline of making monthly investment is gained
• Investment can be made through the services of a fund manager or directly online which is simple, easy
• Funds put their money into companies that offer various returns, which brings in diversification that offers good returns
• Lumpsum investment can be made for a period of time, if making monthly SIP is cumbersome  

Types Of Equity Funds Based On Market Capitalization

• Large cap - Investment is made into reliable large cap company equities
• Mid cap - Investment is made into well-performing midt to large cap company equities
• Mid and small cap - Investment is made into top mid and small cap company equities
• Small cap - Investment is made into best small cap company equities, which due to their small size can give back fluctuating returns
• Multi-cap - Investment is made into top,  mid and small cap equity companies

Kotak SIP Calculator – An Easy Way to Calculate Your Returns

Systematic Investment Plan or SIP refers to the different investment schemes provided by the mutual fund companies. A person who invests in SIP would have to invest fixed amount of money periodically (annually, quarterly, monthly or weekly) into the fund they have chosen. It is very beneficial for retail investors since SIP allows a passive and a disciplined approach towards investing which creates wealth in the long term (by the process of compounding). One of the great things about investing in SIP is, your investment in the mutual funds remain unaffected by the market volatility.

How does the Kotak SIP Calculator work?

Systematic Investment Plan is a great way of achieving your long-term financial goals. The Kotak SIP Calculator helps you in calculating the wealth gain and also the expected returns that you can achieve from your SIP investment. The calculator gives you a rough estimate of the matured amount for any kind of SIP investment that you do. This amount is calculated on the basis of an estimated annual return rate.

The Kotak SIP Calculator consists of different options and you’d have to choose each one of them. The first option is of course the type of investment you would want to choose. There are several different ones; you could take the advice of your financial adviser in order to make the right decision. You then have to input the installment amount that you would like to invest at every interval. The frequency ranges between monthly and quarterly. The last thing you’d have to input is the date when you are starting your SIP investment along with the end date.

Benefits from Investing In a Systematic Investment Plan

Investing in a SIP allows you to average your purchase cost while maximising your returns. Investing regularly in a SIP over a certain period of time regardless of the state of the market, allows you to get more units when the market is low, and get less units when the market is high. This helps in averaging out your purchase cost of the mutual fund units. 

Another benefit that you can reap from SIP is from the power of compounding. Investing over a long-term period and earn more returns from the returns you get off your investment. This is how your money would start compounding. This is helpful in building up a large aggregate for your long-term financial goals with small investments regularly.

Therefore, take the help of Kotak SIP Calculator in order to make an estimate of your returns and start investing in Kotak Mutual Fund right away!

Top 10 Mutual Funds for SIP For Safer and Higher Returns

Top 10 Mutual Funds for SIP | Image Resource: freepik.com

Are you interested in mutual funds? Do you want to yield good returns without burning a hole in your pocket? Then, SIP – Systematic Investment Plan would be the apt choice for you. For those who are not aware of this term, it is nothing but a disciplined investment method that allows clients to get beneficial returns. Most of the mutual funds SIP plans are designed to provide flexibility for the investors. These plans need to be researched beforehand to get the ultimate benefit. 

Types of SIP plans To Match Your Financial Goals

Before investing in any SIP plan, the client must spend time in researching. Since the market is a changing field, it is mandatory to know what type of scheme you are choosing and what benefit you will avail. If you are unsure as to which scheme to choose, you can always get help from your financial advisors about the top 10 mutual funds for SIP. Kotak mutual fund house offers various SIP plans for both short-term and long-term investors. There are many other fund houses that provide SIP plans and you can get details about them online. 

Some Tips on How to Choose Best Mutual Fund for SIP 

There are many systematic investment plans to choose from. Kotak Mutual Fund SIP plans are designed to cater to the requirements of every type of investor. There are also other firms that provide specific mutual funds for SIP. Before investing, it is mandatory to take into account certain factors. Some of them include 

• Aim of investment – before investing, it is a must to understand the need for making the investment. The objective for the investment can vary based on the individual. It can either be to purchase a car or to buy a house, etc. Whatever maybe the case, it is a must to set a financial goal before investing in SIP mutual fund. 
• Know about the funds – some investors blindly invest in any fund they like without having prior knowledge about the type of plan. One needs to understand the reputation of the fund house as they will be investing your amount in the market. Researching beforehand will help you understand about the fund house, the services provided and the plans offered by them. 
• Comparison is a must – another important factor that has to be considered when investing in mutual funds is the comparison of funds. One must research and compare the performance of the funds over the years and then choose the plan. You can do it easily at just the touch of a button or get help from financial advisors. 

Know How To Invest In SIP Directly

 How to Invest in SIP Directly | Image Resource : freepik.com 

Mutual funds offer a good investment option. You can invest in mutual funds regularly. Systematic Investment Plan (SIP) allows this. You can invest a fixed sum of money regularly in mutual funds through SIP.

You should have a goal to achieve and invest accordingly. Identifying your goals is a must. You should know how much to invest and for how long. This depends on the amount you want to collect at the end of the investment period.

You can either consult a financial advisor or invest directly. If you are investing directly without any help then you should get enough knowledge on how to invest. You should select the funds which help you reach your goals and suit your needs. Once the funds are selected you should decide on the SIP amount to be invested regularly to reach your goal.

AMCs like Kotak Mutual Funds offer registering for SIP online. They offer form online which you can fill and submit. This is how to invest in sip directly. For offline you can download the form, fill it and submit it to the AMC. You get a account confirmation statement after your first SIP. You also get confirmation statements for your subsequent installments monthly.

You can start you SIP on any date of the month. But the installments have to be done on the dates offered.

Increase in the SIP amount
You can increase your SIP amount any time. For this you have to submit
    • A SIP form filled and with the new SIP amount.
    • A written and signed confirmation of the discontinuance of the existing SIP.

There are other options available if you want to increase your SIP. One of the facility allows you to increase your SIP any time. You just have to give the instructions to increase the SIP amount. The process is hassle free. You only have to register for the facility. This gives you investment flexibility throughout the duration of the SIP.

Another option allows you to invest depending on the market valuation. The amount of SIP invested is more if the market is low and the regular SIP amount gets invested if the market is high. This allows you to buy more units when the market is low and this way you can make the most of Rupee Cost Averaging. It is an automated valuation based investing.

Kotak Mutual Funds offers you the facilities to increase the SIP amount anytime. The process is simple and convenient.

The Best SIP Mutual Funds That You Should Invest In

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

Anyone who wants to help their money grow efficiently without putting too much of money at risk at once knows about SIP or Systematic Investment Plans.

However, if you are someone who has heard the word SIP thrown around here and there but never understood what it means, then you are at the right place. SIP is a plan with the help of which you can invest a fixed amount of money in a mutual fund after fixed intervals for a fixed or variable duration.

SIP Work Just Like A Piggy Bank For Better long-term Savings

You must have saved money in a piggy bank at some point in your life during childhood. Just as you could save up big by depositing loose change in your piggy bank. Similarly, you can earn a lot of money through SIPs.

With a SIP, you can deposit a certain amount of money, which might start from just Rs. 500 and can go up to any amount during a fixed interval. This interval can vary from a week to a month or even a quarter. This money, which is deposited builds up over time.

Unlike a piggy bank, with a SIP, it allows you to be able to invest your money in profitable businesses, and then share a part of the earning. 

Additionally, with every periodic investment, the amount of money which is reinvested increases, which means that the returns that you get on your investment increases, as well.

As the investor, it is up to you to decide whether you want to receive the interest that you gain on your investment directly at the end of the SIPs tenure as a lump sum amount, or whether you want to receive the small amount after the fixed interval.

While the inner workings of SIPs are a little more complex and challenging to understand, this is a general overview of the process. With this basic understanding of SIPs, you will be able to invest your money in a better way in any of the top mutual funds for SIP.

Where Should You Invest for the best mutual funds for SIP?

Learning about SIPs does not mean that you automatically know the best mutual funds for SIP. Where you invest has a lot of bearing on how much you will earn from your investment. 

To ensure that you invest your money wisely, you should look at some of the top mutual funds where investing in a SIP will help you earn large profitable sums. Whether you wish to invest in Kotak Mutual Fund or Axis Bluechip, ensure to know everything about SIP funds before you make an investment.

Here is the list of the mutual funds which are rated as the best in the market currently:

Kotak Mutual Fund:

This is an excellent SIP for those who are looking to get consistent returns on their investment. Established in 1985, this company has been working hard to establish a name for itself in the industry, and it is not difficult to see that their hard work has paid off.

Kotak Mutual Funds caters to a wide range of customers with varying risk appetites. No matter how big or little your investment is, you will find a theme for yourself. Before you make any investment in Kotak Mutual Funds, you need to have your financial goals in mind. Whether you are investing the money to attain a short term goal such as buying a car, or for a long term goal such as planning your retirement, you will be able to find a suitable scheme, with this company, you can invest mainly in large-cap companies, but at the same time you may opt to invest in small-cap and mid-cap companies. There is even an option to invest in multi-cap companies so that you can diversify your portfolio. Hence, you should head this way if you want to make a smart investment.

Axis Long Term Equity Fund

This mutual fund portfolio comprised of high-quality equity derivates and equity stocks. It focuses on achieving consistent returns on investment for their customers in the long-term through their portfolio. If you are looking for consistent returns on your mutual funds, then you should go ahead with this plan. It has been performing steadily well although it was launched only a decade ago, it has been able to climb the ranks in the mutual fund market effortlessly.

HDFC Small CAP Fund

Over the last year, this mutual fund has performed quite well. It has been able to curb losses and take them to an all-time low, which certainly makes it a worthwhile investment. Although up until last year, its performance had not been noteworthy, and it still needs some time to grow, there is no doubt that it will soon be able to climb the ranks to reach higher in no time. 

Thus, mutual fund mainly invests its assets in small-cap and mid-cap companies. It leaves a bare minimum of its assets for investment in large-cap companies. If that sounds appealing to you, then you should ahead with this plan to make your investment.

DSP Equity Opportunities Fund

Historically, this mutual fund has always maintained a diverse portfolio when it comes to investment. They want to provide appreciation in the capital investment of their consumers, as well as generate income while ensuring a dividend distribution. It has consistently invested in some of the top-rated equities along with equity-linked investment in order to achieve their objectives. Hence, with this mutual fund, you are sure to achieve a consistent return on your investment as well as attain the benefits of a diversified portfolio.

Mirae Asset Emerging Bluechip Fund

With a consistently good performance, this mutual fund will be a wise option for you to invest your money. It has improved its performance in the past year and is sure to do well in the future, as well. Most of its assets have been invested in large-cap companies, followed by mid-cap companies, only a small portion of its investments have been reserved for small-cap companies. Thus, it has a well-diversified portfolio which can work to your advantage.

These are some of the best mutual funds for SIP that one can consider investing. You can consider the one that can help you make the right selection for the investment and help you make the financial investment. 

How Secure Your SIP Investment this election?

The general election 2019 is around 6 months away, but many mutual fund investors actually are very much concerned about it. They’re bombarding the mutual fund managers and advisors with several questions like: `Do I need to make any changes to my mutual fund investments or what investment strategy should I make for the upcoming general elections 2019?’  “What my mutual fund's investment strategy should be ahead of elections is one common question that we get from the retail investors, when we interact to them around election time. General elections are to be held from April to May 2019 for Lok Sabha.

Kotak Mutual Funds have decided to have a close look at the SIP plans around some previous elections just to know whether mutual fund investors have to alter the investment plans before elections. We looked at BSE Sensex for 6 months around election time for past 5 general elections that were held at 1998, 1999, 2004, 2009, and 2014.

Here’s what we have found: The mutual fund market moved up in 3 elections in 1998, 2009 and 2014. Actually, in the year 2009, the market saw 2 upper circuits in one single day after election results were declared. Election results in the year 1999 and 2004 pulled down the stock markets. Benchmark index fell down by 11% on a day election results got declared in the year 2004.

Regardless of any upward and downward trend, the Sensex chart remained very volatile during election time. There is no wonder, the mutual fund advisors and managers ask the investors not to alter the SIP plans and strategies ahead these elections.

The general elections will happen in every 5 years. And, from 1980 to 2014, we have actually seen all types of governments, which include absolute majority government and mixed governments. The average GDP growth also stood at over 6.2 percent over 34 years. Suppose we keep this expectation in mind, and then elections don’t matter much to your SIP plans. Suppose our country grows to about 6% every year, then which government rules, doesn't matter much.

Most of the financial planners and mutual fund advisors point out that our country has actually gone through all types of disturbances, which includes the unexpected election results, trade wars, depreciating rupee, crude rates going high and more. They say that elections may act as the temporary dampener or improve sentiments in a short term, however in a long term, the investors do not have to worry about their SIP plans.

The long term investors do not have to worry and change the strategy because of general elections of 2019. Investors should follow the disciplined approach to their SIP plans and stick to the asset allocation. However, because of high volatility, it is not the right time to actually invest lump sum. Suppose an investor wants at 6 percent (GDP growth above 34 years) and 4 to 5 percent inflation, we don’t see it as the difficult growth rate you can achieve in your SIP plans. 

Thinking of investing in the mutual funds and build the retirement corpus, here’s what you need to know.

Conditions in which SIP Plans will yield good results

The SIP plans will ideally yield you positive results under the following conditions:

Bull and Rising Market: SIP plans will yield good results in either a rising or bull market as each new purchase, though made at the higher rate, is valued at a higher price. But, like seen earlier, in this case, it will be good to buy a whole investment lump sum instead of "averaging upwards" through SIP plans.

Volatile market condition: SIP plans must finally perform very well in the volatile but bull or rising market. It will be a market kind where "rupee cost averaging" will work very favorably for an investor as volatility will lead to the possible average price. Final increase or the bull market will make sure that an end price will be higher than an average price.

The market in the Median range corrects any downwards and moves up: It will be a case where SIP plans will perform very well and looking at all conditions better than the initial lump sum SIP investment. It is because an investor can get the help of an intermediate correction for "lowering his cost".

However, does it mean that SIP plans works in all market conditions? Possibly No. Let’s now check the market conditions in which SIP plans will not work. Thus, it is proved beyond any doubt that the SIP plans may not always be the best investment route. Thus, it is better we move forward and check out when will it be an ideal time to invest via SIP plans or when only buy this lump sum.

Final Verdict 

The SIP plans work on a principle of the regular investments as well as brings the power of compounding ahead. This removes uncertainty and tensions from the investment plan just by making it the mechanical boring procedure. It inculcates a habit of savings and doesn't encourage speculation or timing of the markets. These are all accepted and correct facts.

However, do not forget that SIP plans are just one method of investing in the mutual funds, it is the vehicle, not a final destination - it might pass through the bumpy roads or straight road – but it will lead you to the destination is the lesser or at times higher time period - and sometimes this might also not lead you towards your destination just by derailing your SIP plans. SIP is a method to get on to your investment vehicle and reach your destination – suppose vehicle you select is incorrect – then whichever way you get in- there’s less chance of reaching to your destination. Thus, next time when the mutual fund or financial planner or distributor tells you that the SIPs are the safest route of investment in the equities then keep in mind they aren’t telling lies – it’s the safest route not for an investor but for own selves.

Get Good Returns By Investing In The Best SIP Plans in 2019

Investing in SIP mutual funds has actually become quite popular nowadays. The mutual funds are created when many corporations' pool in the securities to make a fund. The biggest benefit of a mutual fund is investor will be able to minimize their risks by diversifying their assets. So, loss in one investment hopefully can be covered up by profits of another. The stock market will fluctuate suddenly and can cause heavy losses or high returns that depend on the situation. Diversifying your portfolio means reducing your risk of loss just by distributing all your investments than keeping your eggs in just one basket. This is precisely why the mutual funds provide wonderful investment goals.

What’s a SIP?

SIP is one specific amount that is invested for a long period at the regular intervals, normally on the monthly basis. With this method, the investor buys some units of the scheme at the pre-decided frequency. Systematic investment plans help the investors to participate in a stock market, prevent any need to time a market, and bring discipline to the investment methodology. Now, it is possibly done with the mutual fund investments as well. SIP or Systematic Investment Plans help you to invest the fixed amount each month or quarter. Therefore, it helps to spread our investments with time.

Features of Systematic Investment Plan 

For the long-term wealth formation in the equity market, you require long-term horizon and discipline that are inbuilt features of investing in SIP. Following features of the SIP will make this fit for the equity market.

Investment possible with the small amount of money invested often to accumulate wealth

The easy and disciplined way towards investment

Flexibility in the terms of Quantity or Amount based SIP

Flexible intervals such as Daily,  Weekly,  Fortnightly or Monthly basis

Based on Rupee Cost Averaging concept

SIP is quite beneficial and best investment option. Let us see why:

Discipline: More you invest, better will be your chances to get success in the long-term. It includes investing a little early on in life. But, it is very tough to form a habit. You might end up in over-spending and forgetting to invest. But, SIP will help to inject discipline and invest regularly. As SIP will automatically debit money from your account, so you do not have any chance to forget your investment.

Power of compounding: There’s one reason why you’re advised to invest very early. When you will make an investment, you will earn profits in terms of profits from the sale/dividends or interest payments. The first one will get credited in your bank account, and where they then will earn the interest. With time, you will make interest on the interest payments as well. It amplifies your profits. For this reason, many investors prefer to reinvesting the interests and profits instead of using this for expenses. But, SIP helps you to tap in this power of compounding just by increasing the duration of your investing, although it is in the small amounts.

Choose your investment: With SIP, you may tailor your investments that will fit your profile. Also, you can choose the scheme, amount you are looking to invest and a number of Kotak mutual funds units that you want to buy. Suppose you fix an amount in rupees, the number of units that you buy every month may change. In the same way, if you choose to buy the fixed units, the amount you will pay every month might differ. In any case, it will fit your bill.

Cost averaging: It is one key benefit of SIP. In a stock market, one thing that is very important is timing. Same stock or mutual fund will be available at the different rates on the consecutive days and months. SIP helps you to reduce the average investment cost. 

Small investors: Often, there’s the minimum threshold when investing in the Kotak mutual funds. It can differ from one fund to another. It can act as the barrier for the small investors. With SIP, you can start with as small as 500 or 1,000 Rs.

Best SIP Mutual Funds in 2019 

SIP is one highly efficient ways of investing in the Kotak Mutual Fund schemes. With SIP, you can automate your investments every month. You can also spread your Kotak Mutual Fund investments with time in the fixed monthly installments. Thus, you can easily invest a small amount every month at the regular intervals and accomplish your goals. 

The goals can be marriage, retirement planning, purchase of a car or house, can all be fulfilled just by taking a SIP route. Because of its investment style, systematic investment plan is the best tool for investing in the equities. It balanced pitfalls of an equity market. It makes sure complete stability during the turbulent market conditions. Some benefits of SIPs include: 

Power of Compounding 

Rupee cost averaging 

Builds the habit of the long-term savings 

Investors who are very keen on investing in a SIP, then Kotak Mutual Fund is the best option for the year 2019. The funds are shortlisted by undertaking some parameters like NAV, AUM, peer average returns, past performances, and more. 

Choosing Right Companies for Your Investment

When you've decided to go the SIP way, then the next question that comes up is a stock selection. Number one rule is going for the companies that you would like to own when given a chance. There are some stocks that are good for SIP way of investing. And these are the stocks we must accumulate, in the small steps since they represent the long-term value. They’re companies that have the proven track record. Such companies have the solid, ethical and stable management and function in the profitable area with the long-term prospects.

Conclusion

Suppose you don’t want to invest for equity SIP then you can select the Kotak Mutual Funds where you will be relieved of individual company research. Thus, the points mentioned will help you to opt for the right mutual funds and make a worthwhile decision.

Best Child Education Plan Available in 2019

Child education plan

The ultimate goal of every parent is to provide his or her child the best opportunity to grow in career. It is of utmost importance that proper planning is done to secure the future of your child. The investment plan for child helps and by the time your child is ready to go to college, you will have a sufficient amount of funds. This will get rid of your worry about the high cost of education.

Effect of General Elections on the Stock Market

We are unaware of the situations that will affect the stock market in 2019 as sentiments of the people are unpredictable. Share markets may or may not remain volatile but as an intelligent investor, make a judgment of the market before investing in mutual funds. It is advisable to invest before the general elections 2019. The above mentioned mutual funds by Kotak are a good option to invest in 2019.

Importance of Child Education Plans

Child plans serve two purposes like they provide insurance, as well as investment which secure the future of your child. Hence, the child education plan does the work of a shield which protects a child from all unfortunate circumstances in the coming future. The best child plans ensure that by the time your child attains 21 years of age, the desired funds are available for his or her studies. There are a number of companies in the market selling child plans and for that reason, it is a very difficult choice for a layman to decide a best child plan for the education of a child. It can however be taken care of by deciding what type of a plan you need, what are the benefits provided by the plan, what is the term for paying premiums, the tenure of  the plan, and premium rates.

Best child education plan to suit your child’s needs

Do not struggle hard to find the best child plan for your child. Kotak has a very systematic plan designed for the benefit of the children and this plan is called Kotak Head start Child Assure Plan. This child education plan is the best option to invest in 2019. This plan provides 7 funds to suit the risk-taking ability of all investors. The mutual funds offered by this plan are the classic opportunities fund, frontline equity fund, balanced fund, and dynamic bond fund. It offers the flexibility of withdrawing money after the completion of 5 policy years through partial withdrawals. It also offers the facility of switching between investment funds. The full amount of fund value is paid on the maturity of the policy. The tax benefits can be taken care of under section 80 C and section 10 (10 D) of the Income Tax Act of 1961.

Some Mutual Funds operated by Kotak Mahindra

Kotak Mahindra caters to the needs of investors from different backgrounds. They give stress to wealth growth in the long run and also to mutual fund schemes with low risk, along with generating more income. Some of the top Kotak Mahindra mutual funds are:

1. Kotak Mahindra Equity Funds, which are schemes that have selected around 60 companies with high performance in the domestic, as well as global market.

2. Kotak Mahindra Tax-Saving Equity Funds: They are known by the name Kotak Tax Saver and are the best option for investment in tax-saving mutual funds.

3. Kotak Mahindra Debt Funds - They provide good returns to investors.

4. Kotak Mahindra Hybrid Fund – Being hybrid in nature, it offers the best traits of equity and debt schemes.

5. Kotak Mahindra Liquid Funds, which are one of the ideal products of Kotak fund scheme.

6. Kotak Mahindra Fund of Funds – They consist of various mutual fund schemes like Kotak Asset, Allocator Fund, Kotak Gold Fund, Kotak World Gold Fund, and Kotak Global Emerging Market.

7. Kotak Mahindra Exchange Traded Funds: They give good returns to investors.

Some of the leading Kotak mutual funds to invest in 2019 are Kotak Standard Multicap Fund-G, Kotak Corporate Bond Fund Standard Plan, Kotak Credit Risk Fund and Kotak Dynamic Bond Fund.

Some Best Performed Mutual Funds in 2018 of Kotak Mutual Funds

Although Kotak provides a lot of choices for investments in mutual funds there are some very popular and reliable fund choices that you can consider for investments and they are:

Kotak NV 20 ETF- Dividend

Kotak US Equity Fund-Direct - Growth

Kotak US Equity Fund - Standard Plan

Kotak Sensex Exchange - Traded Fund

Kotak India EQ Contra Fund Direct- Growth

Investing in Mutual Funds via SIP

Money which is left in fixed deposits accounts does not yield much profit as compared to investments done in mutual funds through SIP. These funds can be used for a child education plan. You should know about a company in which you can make the best SIP investment and check the profile of the company picked by the fund house to understand its performance in the past few years. This can be done by reading details given in the scheme documents. Moreover, you should also have an understanding of taxation on SIP, which depends on the type of mutual fund in which you want to invest and when you redeem the investment. For instance, the returns which you get from equity mutual funds have no tax on them if you redeem it after 1 year but if it is redeemed before 1 year, then you have to pay a tax of 15% on all your gains.

If you are to invest in tax saving mutual funds, SIPs are always advisable. If SIP is used to invest in ELSS mutual funds, then you are entitled to claim tax deductions up to Rs. 1.5 lakh under the section 80 C of Income Tax Act.

Benefits of Investing in Kotak MF Child Plans

Kotak Mutual Funds offers a lot of feasibility when compared to other mutual funds. Kotak has well-experienced managers who provide suggestions on different schemes and information about the best child education plan and the ease of its operation. Moreover, they offer a range of investments products. The online portal offers the convenience of choosing from different mutual fund investment options from the comfort of your home.