Why is SIP the best long-term investment plan?

SIP | Image Resource: businesstoday.in

When you invest a fixed amount, on the fixed date of every month for a predetermined period it is called as a Systematic investment plan or SIP. It is a hassle-free, methodical and best way of investing money in mutual funds which has recently become popular. The biggest advantage of SIP is even with a small monthly investment like 500 rupees per month you can get huge profit.

Here are some advantages of SIP that makes it best investment plan: 

1. You can stop it at any time: 

In case you are not willing to continue with your investment plan you can stop it at any given point of time and withdraw full amount. You need not wait for the maturity of your investment.  

2. You can skip payment: 

If due to any reason you can’t make payment, you can simply skip the payment and  you will not be charged for that  nor any kind of amount will be deducted from you and you can skip payment as many times as you want. 

   

3. You can start multiple SIP’S:  

If suddenly your income grows or you simply want to invest more you can start another Systematic investment plan. In fact, you can open as many plans you want under this scheme and there are no charges for doing so. Opening a SIP is free of cost. You can simply divide the amount in small portions which you want to invest in SIP and use them for multiple SIPs. This will be more profitable than investing in a single SIP

4. You can invest small amounts: 

No need to worry about investing huge amounts. You can invest as low as 100 rupees monthly and start your Systematic investment plan.

  

5. It helps to manage your savings:

 As you invest every month fixed amounts your savings are managed wisely. 

6. No need to learn about the condition of the market: 

When you invest in SIP mutual funds, you need not worry about the good or bad market timing. 

7. SIP Can be used for emergencies: 

Fund collected under this scheme can be withdrawn at any time when the need arises hence it can be used in emergencies.

  

8. Compound interest: 

When you fix a small amount for long periods you earn more year after year.

Above told benefits come only with SIP investments, therefore if you are looking forward to starting a small amount of investment, Systematic investment plan or SIP is the best form of mutual fund scheme where you can invest without any fear. The thumb rule of investing in this scheme is starting early, invest wisely and regularly. This plan will secure your future and you will not have to worry about your future.

Why To Choose The Best SIP To Invest Now?

Everyone wants a life where nothing seems to far-fetched or expensive. People who invest are inching closer to their dream of living life to the fullest. However, there are pitfalls in investment as well and many a time, people have ruined their whole lives by investing in the wrong places or in trying to hurry to the top to realise their dreams. The procedure is a gradual procedure and investment is a steady and gradual process of realising your dream.

Mutual funds are the place to invest in now because it is the safest route to your dream. It is a gradual process but it doesn’t involve risks like the other modes of investment. The gradual accumulation of wealth through the compounding of investment, takes you one step closer to your dream, one investment at a time. To invest in mutual funds, one needs to open a SIP account and start investing a fixed sum of their choice at intervals of their choice as well (daily, weekly, monthly, etc.). The people who understand investing are looking for the best sip to invest now.

Best SIP To Invest Now | Image Resource : financialhospital.in

Advantages of choosing the best sip to invest in

The main problem behind people investing in risky places is that they are not fully aware of the numerous advantages of SIP investing. This article aims at shedding light on the benefits of SIP investment. Some of them are as follows:

1. Disciplined approach – A person would always prefer a safer and more secure mode of investment where he or she doesn’t have to keep tabs on the market fluctuations all the time. Also, there is always the risk of losing the money or incurring a loss. In SIP investment, there is no risk factor involved. All one has to do is pay a fixed amount, every week or every month, depending upon the plan chosen.
2. Easy to monitor – There is absolutely no need to keep tabs on your investment every day because it keeps growing, thanks to compounding. Also, the amount for the investment is deducted directly from your bank account if you opt for the auto-debit system that the companies offer.
3. Compounding – The basic point of investment is to see your money grow and SIP investing does just that. It has a compounding system that keeps adding to your wealth and it keeps growing.

These are only 3 of the basic advantages that you can get by investing in SIP. The right thing to do would be to consult with an expert and choose the best sip to investing.

How To Select Best Mutual Funds To Invest In SIP

SIP or Systematic investment Plan could be defined as the best way to plan an investment in mutual funds. It is a disciplined way of investing and is provided with small investments at regular intervals. It helps you to achieve a profit of long term. The earlier you invest, more time you get.

You could invest your money on a monthly basis or on a quarterly basis or on a weekly basis. You are provided with flexible investment time according to the way you want or prefer. Today you can easily do this through online banking and online investment process.

Process of selecting the best mutual funds
When you plan to purchase stocks it is very important to select the right one. Just like that it is also important to select or choose the appropriate or right mutual funds. It is true that you want your invested amount to grow at a fast rate when you plan to select the best mutual funds to invest in SIP. 

There is a key point or rule to select or choose these mutual funds for investing in Systematic Investment Plan. You should look for the mutual funds which have performed exceptionally well in the previous three to five years. You should also keep an eye on the funds which are rated by CRISIL and have achieved the position of rank 1 and rank 2 and is found among the list of the top mutual funds. The next thing that you should look for is the ratings of the mutual funds and it should not rank less than 4, but should have achieved a higher rate from the online value research.

Therefore, it is proved that the systematic investment plan makes the way for you for managing your daily financial problems. It also looks into the matter that you could be able to start with the savings from an early age for the upcoming days. To be more particular if you receive salary for the work you do then you should try to keep aside a part of the salary and invest in Systematic Investment Plan with the help of the best mutual funds. 

It is more helpful if you do this in parts and in regular intervals, that is, you should be investing on the basis of weeks, months or quarter of a year without paying a lumpsum amount.

What are the benefits of SIP?

SIP Mutual Funds| image source : freepik.com 

SIP or ‘systematic investment planning’ is a disciplined way of investment and today, you can start your investment or SIP with INR 500 per month only. You set aside a fixed amount every month out of your income or salary and invest in a SIP at regular intervals. There are a lot of factors which should be considered while selecting an SIP like past performance, growth index, beta of a portfolio, and other factors affecting the portfolio directly and inversely. It also reduces the risk by diversifying your portfolio meaning if your risk appetite is high than you can choose a more equity concentrated SIP otherwise if you have a moderate or low risk appetite than you should go for a SIP which has debt and equity both. In this case, you can choose Kotak Mutual Fund as SIP investment plans which ranges from high to moderate risk and also from long term to short term perspective.  

Benefits of SIP mutual funds: 

• Easy to Invest- SIP mutual fund can be easily set up online from the comfort of your home. All you need is to choose the right mutual fund, the amount you want to invest, select the installment date, provide your bank and security details, and you will get the details of your investment or schemes on your online dashboard. Kotak Mutual Fund has made it easier for customers to invest, and you can easily start your SIP account by entering your phone number, email ID and PAN number.
• Cost Averaging- SIP deals with market volatility in a systematic manner. One of the biggest benefits of investing in SIP is mitigating the market volatility by cost averaging. In cost averaging you buy more units of mutual funds when market is down. This means you're investing at all prices and when the market goes up or down the value of your investments is increasing. 
• No Lump sum Investment- A SIP can be invested for as less as Rs. 500. You don't need a hefty amount to start SIP. You can invest as much as you like depending on your savings or income. Even you can also get the tax deduction from selected tax-savings funds or schemes. 

An SIP can help you meet your financial goals and you can also secure your retirement with a SIP investment. An investment in a government security like a bond or certificate will have lower returns or an investment in shares will have higher returns or lower returns associated with volatility. If your financial goals are aligned with your SIP then you will reach your financial goals irrespective of the market movements.

All You Need To Know About Systematic Investment Plan Or SIP

SIP

A Systematic Investment Plan is the most preferred plan when it comes to mutual fund investment i. While a lot of people still believe in traditional investments, systematic investment plan has made a mark in the finance sector with its incredible performance. 

If you are planning to invest in sticks via SIP and do not know which SIP plan to choose, here is a list of things that will help you find the right plan for your capital.

What does SIP mean?

SIP is basically known as systematic investment plan which allows you to invest a certain amount of money at regular intervals to gain maximum returns. This method brings discipline to the investment technology. The investor also gets an insight into the share market

When should one start an SIP?  

There is no particular time to start an SIP. All you have to do is fill the common application form with an SIP mandate and submit it to the desired mutual fund house.

For how long does one needs to invest in an SIP?

It is advised to invest in mutual funds for at least six months. However, the investor can decide the tenure for his/her investment. This option is called as the ‘perpetual option’, by opting for this; it means that your SIP will go on until you instruct the mutual fund house to stop it. It is often suggested to set a goal of investment. Also, it is advisable to select it for longer duration of time to derive maximum returns.

Can one change the SIP amount?

The amount of investment can be increased or decreased based on the investors wish. The investor will have to cancel the previous mandate and provide the new one. Also, there is no charge levied by the mutual fund house if you stop an SIP.

Can one make a lumpsump investment in the mutual fund scheme?   

Adding a lumpsump amount does not affect your running SIP. One can add the amount in the scheme at any time they want. Usually, investors make changes in their investment amount during market fluctuations or when they gain profits. 

Is it fine to miss an SIP payment?

There is no issue if you miss a particular payment. Also, your account will not be deactivated but you can stop investing money depending on your financial situations.

How To Choose The Best Sip For 5Years?

Best Sip Plan For 5 Years

When it comes to buying a mutual fund, one must do their homework and do some research before buying. Systematic investment plan or an SIP is a capital investment plan is the best way of investing money in which a small amount of money is invested over regular intervals of time. Also, it helps create long term wealth and generate better returns on investments. 

Before buying, one should know the benefits associated with of the best sip plan for 5 years. Have a look at some of the major benefits of using an SIP.

Flexible investment

Investment in an SIP is termed to be flexible as there is no specific tenure associated with it.

Low investment

An SIP can be started with a small amount of money; however it is advisable to keep the amount low and tenure high.

Lower market risk

The risk factor associated with an SIP investment is quite low. However, it is not totally eliminated.

Investment in an SIP is considered to be fruitful when invested for a longer period of time. Most investments include a 1 year plan, 3 year and 5 year plan. The key aspect to gain maximum profit is to follow the mantra of “lower for longer” which means lower investment for longer duration. The best sip plan for 5 years can thus give you major benefits in a timely manner. The process of investing in an SIP remains same whether it is for shorter duration of time or longer duration of time. You can either invest online or offline in SIP. 

After you have selected the duration, it is very important to select the best SIP plan. One should carry out thorough research of different mutual fund schemes available in the market; compare the prices and other aspects. 

There is no point in paying a high amount for a similar competitive unit. Selecting the right house and the best fund manager is also important. As all your investments are taken care of by the mutual fund house you should opt for an experienced and reputed mutual fund house to gain the better returns on your investment. At the same time the fund manager and his team are the most crucial factors of the house. Make sure you check whether he has the necessary skills or not. Also, check the sustainability during market fluctuations before making an investment in the best sip plan for 5 years. Although the risk factor associated with an SIP is low one should not neglect the above mentioned aspects while they make a long term investment for 5 years. 

Invest Into SIP To Gain High Returns After Investment Tenure!

SIP

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.

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.