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!
