MANDATORY DOCUMENTS FOR SIP

As an investor if you have finally decided to start SIP online & are worried as how to go about it? Then we have the best answer for you. Simply, log into Kotak Mutual fund website, relax, sit back & enjoy the simplest process.

Starting a SIP Online | Image Source : Pixabay.com

Starting a SIP online is simple 4-step process.

1. Decide your investment amount.
2. Select your investment frequency.Set a Date.
3. Choose a Mutual Fund for SIP.

Once the set-up is complete, the process takes place automatically – no additional effort required from you.  You live your life – while your money goes to work, earning additional money for you. Here are the necessary steps that you need to follow if you wish to opt for SIP investments:

1. Complete the required documents: Following documents are mandatory:

• Identity proof: PAN card,
• An address proof: Driving licence/bank statement/utility bill
• A passport size photograph and
• Your bank account cheque book. The cheque book will come handy to provide your bank details.
• Confirm your present existence through an In-person verification (IPV)

2. Become a KYC compliant: Becoming a KYC compliant is mandatory. Complete all the basic information like: name, date of birth, mobile no. & address through the eKYC channel. Complete all the basic information and upload a soft copy of your PAN and address proof to support the details filled in the first step. Further, you can also complete the eKYC procedure using your Aadhar number. This will simplify the process & the application becomes quick.

3. Start your SIP online: Once you are KYC compliant, you can visit the website of the preferred mutual fund & look for registration. Select “Register now” or a “New Investor Link”. You are almost nearing the process of completion. It will prompt you to fill an information detailing form with your basic details. Then choose your preferred username and password for transacting online. Carefully enter the details of your bank account number to set up a standing Instruction for debit at a regular interval.

4. This is the last step: Log in to the website with the chosen username, password and select the mutual fund scheme you wish to invest in as per the SIP plan. You can also decide the timelines and frequency of the monthly SIPs according to your convenience. After the successful completion of the entire process, the SIP will start after a gap of month or 45 days.

SIP CALCULATOR

Whether it is for a better & secured future, you wish to go for a dream vacations, wish to lay the foundations of your dream house, or you are concerned about your child’s education or a happy retirement, SIP plans can be a blessing in disguise. So, it all boils down to a very great thought that if you wish to have a financially secured future then start investing into SIP.

SIP Calculator | Image Source : Pixabay.com

SIP investment Plans (SIP) is more like a tool that encourages and brings discipline in your investments by allowing you to invest a certain pre-determined amount at regular interval be it weekly, monthly, quarterly or half-yearly). Not only this it also does not affect or disrupt to your monthly budget. It is more like having an organized way of managing your budget & finances. In SIP, as you have decided on your preferred mutual fund to invest, the fixed amount is deducted from your savings account at a regular interval as per the plan & preferences set with the mutual fund you’d decided to invest.

Gone are the days that you have to get worried & hassled up with the number of paper works to be considered for investment. But now, with the advent of online investment plans, all you got to do is, sit back relax & make your investment at your own convenience. The best part of online investment is that all the information is available at the click of a button. There are fully loaded websites that provide the entire gamut of information related to it. The website is not only informative but has a great list of details for a hassle-free investment experience, you may visit  on Kotak. Just check on the SIP planner calculator to figure out how much you need to invest to achieve your goal.

The SIP Calculator has related information on:

• SIP Planner
• Wealth Builder
• Cost of Delay
• Vacation Planner
• Dream Car
• Dream Home
• Child's Education
• Child's Marriage
• Retirement Planner

Just select your preferred investment & calculate the financials involved for a better financial future. So, stop thinking & start investing into SIP plans. It will cater to all your need & requirements.

Factors that help you decide what is the best fund to invest in SIP?

SIP is one of the popular ways of making an investment in today’s scenario. It is safe and has a low cost with high results. But one thing you must remember that mutual fund that is the best today may not be the same after a few decades. Also, we ignore one very important fact that the performance  of funds vary when it comes to SIP.  Hence, no one can give a hundred per cent accurate advice on which mutual fund scheme will top in next decade but with years of experience, one can decide the process that can help you shortlist the best mutual fund scheme for future. 

Here are few deciding factors that will help you chose the best fund to invest in SIP:

• When you plan to invest in SIP you must analyze risk-return parameters, different schemes and quality of the fund manager. 
• You should also analyze the history of the returns of various funds over the period of time and consider buying the funds  that have outraced the market and their peers then select the fund that matches your risk appetite and can also meet your investment goal. 
• Evaluate how the fund has performed in different market cycles especially analyze when the market was low what was the performance of the fund? 
• Always analyze and compare the fund with its benchmark index and its peers this will give a better idea of the fund's reliability. 
• You should not invest under any scheme by only reviewing the high returns you should select the scheme that can manage the downfall of the market well and stand by your side in bad and good times both.
• Review the portfolio of the scheme you are planning to invest in and make sure that fund doesn’t pit all its investment in one stock. 
• The fund manager is one of the important deciding factors when buying any mutual fund scheme. You should consider the fund managers that are process driven and not the star fund manager.  
• Always keep a long-term goal from 5 to 7 years when investing in the SIP for better results
• Deal with the market tactfully. Investing all your funds in one scheme can turn out dangerous. Thus, it is advisable that you diversify your investments into various schemes that have the capability to deliver good results. 

Take into consideration these simple methods and chose the best fund to invest in the SIP. 

Understanding the key vocabulary used under Systematic investment plans

We know  what SIP means and how it works. It is a way of investing a fixed  amount in a regular basis for a  predetermined period. But it is quite often that we get confused with the basic terms that are used by professionals while discussing SIP.  When you start investing under SIP there are a few terms you will often come across, it is important that you understand these terms to get better clarity and to avoid any confusions.  Some of the most common terms used in SIPs are Units, NAV, redemption, AMU and AMC. 

SIP Vocabulary and its meaning 

Here are some of the basic terms that are used under systematic investment plans and their meanings: 

A unit is one of the most common terms used in SIPs. Holdings of mutual funds are represented in form of unit. Every time you invest an amount in mutual fund units based on the amount and price of one are added to your account. 

NAV or net asset value in common word means the amount you have used to buy or sell your mutual fund. NAV decides the unit of your mutual fund. NAV also indicates the actual market value of the fund hence it helps you to keep the track of the performance of your systematic investment plan.  NAV is calculated on daily basis hence it is  mandatory for all the mutual funds to publish their NAV on every business day. 

Redeeming your SIP or redemption means selling your mutual fund partially or completely and liquidating your asset value. You can redeem your fund to meet your financial need, during the peak performance of your fund or to transfer your investment to another scheme or investment. You can redeem your SIP funds whenever you want without waiting for their maturity. 

AMU or asset under management is the total market value of the investment in a mutual fund scheme that is managed by financial companies known  as an asset management company or AMC. It is basically used to compare the performance of your plan.  

It is always wise  to do your homework before you decide to venture into any new scheme or business and understanding the meaning of vocabulary is the first step, this will build your confidence and also give you better understanding of what you are getting into and you will not sound like a newbie who can be fooled.  

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.