In today’s time, every common person wants to have maximum income, so that he can fulfill his needs and dreams and live a happy life. SIP is an investment mode of mutual funds where people invest small amounts at regular intervals. However, those who are new to SIP investment should know how to start SIP. So, let’s understand how to start SIP investment, some of the best performing SIP, the concept of SIP online, how to buy SIP online, etc. Systematic Investment Plan (SIP) is the best way to invest in mutual funds schemes. However, a large number of people still remain confused about this. Many people consider it as the category of mutual funds scheme. Let’s know what is SIP and how you can start investing in mutual funds through your home.
What is SIP ?
Systematic Investment Plan allows you to put a fixed amount every month in the mutual funds scheme of your choice. If you want, you can also invest every week through SIP. Discipline is very important in investment. SIP maintains discipline in investment. Apart from this it continues to invest regularly. Whether the market is booming or slowing, your money goes to mutual funds. For example, if you have decided to put a fixed amount every month in a mutual fund scheme, then you will not need to take separate time for this. People can start investing as low as INR 500. SIP ensures a person’s current budget to ensure that future goals are not hindered when planning. Furthermore, in this system, investment spreads over time which helps individuals earn more. However, an important question that still needs to be answered is how to start SIP? Which is answered in the following section.
Know what is the investment process for SIP?
To start SIP, you should have some important documents. These include PAN card, address proof, passport size photograph and check book. Check book because it also contains your account number. KYC is essential to start investing in essential mutual funds, Know Your Customer (KYC) is mandatory. You have to provide the necessary information like name, date of birth, mobile number, address etc. You only have to give it once. Online can also complete the process of KYC ie e-KYC.
When your KYC is completed, you go to the website of the fund house whose scheme you want to invest in. Search Register Now or go to New Investor Link. In this, a single form will be found in which basic information has to be filled. After this, after setting the user name and password, you can start investing online. In this, you will also be asked the details of the bank account. You have to tell how much you want to invest every month. You can choose the date of installment of SIP as per your convenience.
Advantage of SIP
- We can invest Small amount in SIP.
- SIP is a simple way to save. withdrawing money with SIP is very easy.
- SIP is a safe and systematic investment.
- Investing in SIP carries less risk.
- There is a tax exemption on withdrawal of funds from SIP.
- SIP is a convenient investment.