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.
