Best Mutual Funds to Invest in SIP: Key Points To Note for High Returns

Are you planning to invest in mutual funds? If yes, then it is mandatory that you take a few important steps. Before starting with the process of investment, you need to understand in-depth the concept of mutual funds, how it works and other related details. By knowing these beforehand, you can take the right decision and gain benefits in future. For those who are unclear as to what a mutual fund is, it is nothing but an investment platform. The professionals at various fund houses analyze the funds and invest them in various bonds and stocks. So as the stock value goes high, your investment amount will also increase.

There are many positives and negatives associated with mutual funds. One needs to have a clear understanding of the pros and cons before venturing out into the world of mutual fund investment. Once you invest your amount in a fund house, the professionals will take it over from there. They will allot the specified funds that are likely to yield more profit. These experts have years of experience in the field and will be able to judge when the market values rises or drops. They will then make the switch between funds or change the investment to avoid risks and money loss.

An Insight on Mutual Funds: A Guide for First-time Investors

In addition to mutual funds, the fund houses also provide an array of other reliable services. Some of them include sales and accounting, customer service, financial consulting, and more. For those who wish to start an investment without spending much, sip would be applicable. SIP – Systematic Investment Plan helps clients make a considerable amount as investment without having the need to burn a hole in their pocket. One of the best things about sip is the fact that the investment amount can be as low as INR 500 and can be changed as per the needs of the client. You have the options to make monthly, weekly or even quarterly payments.

Choosing the best mutual fund can be a daunting task if you are unclear about the entire scenario. Here are some questions that you need to ask yourself before getting started.

• What is my future goal?
• How much returns am I expecting?
• How much should I invest to attain my future goals?
• How much amount will I be able to set apart every month?
• For how many years should I make the investment?
• How to find the best sip plan?
• Will I be able to switch sip plans after investment?

These are some basic questions that will help you get started with the entire process of online investment. When it comes to mutual funds, there are basically two main types namely the close-ended and the open-ended scheme. In close-ended plan, the maturity period is fixed whereas in open-ended it is not the case. Many opt for open-ended scheme as they can withdraw and quit anytime they want. In open-ended scheme, customers can enter and exit anytime they want, which is also apt for investors. So if you wish to choose the best mutual fund, you need to make a note of some important key points such as

• Investment objective
• Fund history
• Financial ratios
• Expense ratio
• Performance of fund manager

When it comes to mutual funds based on assets, there are three types – hybrid, equity and debt funds. You can also pick the mutual fund of your choice based on investment objective that include growth funds, income funds and balanced funds. Customers can also opt for specialty funds that include index funds, sector funds, regional funds, and tax-saving funds.

Best Mutual Funds to Invest in SIP: At a Glance

Whether you wish to invest a large sum of money or stick with a limited amount, sip would be the right choice. In sip investment plan, one has the option to invest a specific amount over a stipulated period. Based on your requirements and financial goals, you can choose from three types of sip plans that are mentioned below.

• Short-term investment is best suited for those who plan on investing within a short time period ranging from 3 months to 2 years. This is best suited for those who wish to set aside some amount for emergencies.
• Medium-term sip plans are suitable for those who have a short-term financial goal. The time duration ranges from 2 years to 5 years.
• Long-term sip plans are apt for those who wish to save money for the long run such as retirement, child’s marriage, education and more.

Based on your financial goal and income level, you can filter the best mutual funds to invest in sip and get started right away. Here are some tips that will help you pick the best sip plan.

1. The first and foremost thing to be taken into account is your investment amount. Determine how much amount you will be able to set aside as investment every month.
2. The second thing that you need to consider is the type of fund house that you wish to select for your sip investment. To do this, you need to compare all the fund houses that provide sip plans. This may be a tiring task, but it is essential to filter the best fund house.
3. The third thing to be taken into account is the historical performance of the fund that you wish to select. This is yet another crucial step that cannot be overlooked. By analyzing the historical data, you will be able to identify if the funds will perform well in the future.
4. Last, but not the least, get expert help when it comes to choosing the best sip plan for your future. Many sites come with professionals who have years of experience in the field of online investment. You can get in touch with them and get the necessary details as far as mutual fund investments are concerned.

Once you choose the right sip plan, all you need to do is fill out the necessary documents and get started right away. The process is quite simple and does not involve a lot of paperwork. There are also options where you can withdraw the amount or even close the account. So why wait? Choose the best sip today!

Kotak Mutual Fund – How To Invest In SIP Plan?

Systematic Investment plan or SIP has been gaining popularity for the past few years. More individuals are getting keen on investing in SIP because of all the benefits that they can reap off of this in the long run. Below is a quick guide that will help you understand how to invest in SIP Plan and what the benefits are.

Before you start off you need to understand what exactly is SIP. Systematic Investment Plan or SIP allows a person to invest a fixed amount consistently in a mutual fund scheme.

How to Invest In SIP: The Basics

If you are interested in how to invest in SIP with Kotak Mutual Fund then there are a few things that you need to know:

Getting Your KYC: This is the first and the most obvious step in starting a systematic investment plan. Completing your KYC or Know Your Customer done is important. You have to complete this only once and then you will be able to invest in any sort of mutual funds. If however you do not have KYC, then visit the nearest KYC centre with all the original documents (PAN Card, photograph, KYC form and an Address proof).

This process is however not needed if you were to invest through a broker, but it is not recommended since that is a very expensive process.

Planning Your Funds: If you were to let your broker choose the funds for you then it is very likely that you will get stuck with a newly launched or a close ended high cost fund. This is obvious since the broker would want to sell you the most expensive funds that there is, so that he can earn the commission. So it is always wise that you take the help of a financial planner instead of relying on a broker.

Planning Out Your investment Strategy: If you were to pick up different investment plan from the same category then it would be of no use. Before you choose in which investment plan you plan on investing your funds, it is important to know the different kinds of funds. There are 5 categories – SmallCap and ELSS, MidCap, LargeCap and Flexi/Multi Cap.

Creating Your Portfolio: The financial adviser will help you choose the right kind of funds that you should invest in. If you were to invest in a LargeCap your returns and risks will be obviously very low when compared to you investing in a SmallCap. If you were to look at it from a long term perspective then it is always recommended that you invest in a SmallCap in order to get the most benefits.

These are a few things to get you started on systematic investment plans with Kotak Mutual Funds.

Learn How To Start SIP Investments

How to Start SIP Investment | Image Resource : freepik.com

Mutual funds are a good investment option. You can invest through Systematic Investment Plan (SIP) in mutual funds. SIP allows you invest a fixed sum of money in mutual funds regularly. It is a simple and a disciplined way to invest.

Before you start a SIP investments you should identify your goals. Once you have a goal to reach you can decide how much you need to invest monthly to reach your goal. There are different types of funds and it is difficult to select the right fund. You can consult a financial advisor to find the right funds to invest in. The financial advisor can also guide you to decide the right SIP amount to invest monthly. The financial advisor can guide you on how to start sip investment.

To start the SIP investments you have to fill the required forms and give in the first SIP amount. There is a minimum amount of SIP required and there are a minimum number of installments required. You can start SIP on any day of the month. You will receive an account confirmation statement for the first SIP. You can make the further installments quarterly or monthly on the dates given. You will also get the account statements for the subsequent installments.

Kotak Mutual Funds offer SIP investments for a SIP as low as Rs. 500 and subsequent installment in multiples of 500. There are other funds with the minimum SIP of Rs. 1000.

Benefits of SIP investments
There are many benefits of SIP. They are:

•  As you invest regularly you do not have to time the market.

• The long term investments do not get affected by market volatilities as you invest regularly.

• When you invest a fixed amount you can buy more units when the market is low and less when the market is high. This brings down the average cost of acquisition of units.

• It is a smarter option to invest for long term as your regular investments can have a significant effect on wealth creation.

You can also increase your SIP amount any time. There are facilities available to do it. You just have to register for the facility and you can increase your SIP any time. Other option allow you to invest regular SIP when the market is high and a higher SIP value when the market is low.

Kotak Mutual Funds offer SIP investments with the option of increasing the SIP amount later.

Calculate the right SIP using systematic investment plan calculator

Systematic Investment Plan Calculator | Image Resource : freepik.com

If you are investing in mutual funds through Systematic Investment Plan (SIP) then calculating the right SIP amount is important. If you invest the right SIP amount regularly then you can reach your financial goals.

There are many tools and calculators available to help to find the right amount. One such tool takes the scheme chosen, the SIP amount invested, the frequency of installments, for date and to date as inputs. The output is the amount on the required date and a graph. This way you can calculate the amount that you will get by investing the given SIP amount. Systematic investment plan calculator is a very useful tool.

Another calculator takes your monthly investment, the time period and the expected rate of return as inputs and gives the amount you collect at the end of the time period. This tool can be used to calculate the right SIP amount which has to be invested monthly.

Kotak Mutual Funds offers different tools and calculators to help you. They are available online.

Other tools
There are other tools which give you the amount you collect at the end of investment period. In one of the tool the input is the amount invested and the expected rate of return. The output is the amount you collect. This can be used to calculate the money you need to invest to reach your goal.

One of the calculators helps you to calculate the amount after you have increased your SIP amount. The input to the calculator is the monthly SIP, the duration, the increased SIP amount, the frequency of the increased SIP amount and the assumed annual rate of return. The output is the total money collected at the end of investment period.

Kotak Mutual Funds offers these calculators and tools to help you to do the calculations easily.

Benefits of SIP
There are many benefits of investing through SIP in mutual funds.They are:
• As you invest regularly you do not have to time the market. The long term investments are not affected by market volatilities.
• When you invest a fixed amount you can buy more units when the market is low and less when the market is high. This brings down the average cost of acquisition of units. This is called Rupee Cost Averaging.
• Investing in mutual funds for long term can make your investments wealth creating investments. It is a smarter way to invest for long term rather than the traditional ones.

A Detailed Guide on Systematic Investment Plans

SIPs have been popular in the market for a long time now. However, there are many who do not understand SIPs completely. If you find yourself wondering what a SIP is and how does it function, then you are in the right place. This article will give you an insight about SIP in detail.

Debunking SIPs for you

First of all, it is not uncommon to come across the opinion that SIPs are nothing but mutual funds. Most of the people and investors believe that mutual funds and SIPs can be used interchangeably. However, this is not a true fact to believe.
The first thing to know here is that mutual funds and the SIPs are different. SIPs are merely tools that allow you to invest in mutual funds regularly. With the help of SIPs, you can ensure to make regular investments without any worries.
SIPs help you to stagger your investments. As most of the experienced and learned mutual fund advisors would tell you, investing a lump sum of money in a mutual fund is not beneficial for you. Regular investments will get you more benefits. SIPs are the best tools to help you invest your money in the right places at the right times.

Why should you use SIP?

Since we already know that SIPs help you to invest your money in mutual funds regularly, you can find the maximum benefit from the same. This allows the investor to regularly invest in various types of mutual funds, usually an equity mutual fund scheme.
SIPs are one of the simplest methods to keep your investment high and functional. You do not have to worry about the market, indexes, and many other things. If you are worried about your investments, you have nothing to worry about with SIP. SIPs regularly invest the money for the time period you wish it to function for automatically.

How much money is required for SIP?

When you decide to invest in SIPs, you need to remember that you do not have to invest a large sum of money over the years. However, a minimum of INR 500 must be deposited. Apart from that, the upper limit for SIPs can be as per your choice. You could invest in one or more SIPs or choose to invest higher in one single SIP, the choice is completely yours.

How to find the best SIP plans for long term and short-term SIPs?

SIPs are simple when you come down to it. There is hardly anything complicated about it. However, when you decide to invest in a SIP, you need to know that SIPs can be decided as per your requirement. Your long-term goals and short-term goals will help you to know if you which SIPs to go for. If you are looking for the best SIP plans for long term or for short term SIP options, then here is how to do so:

• Firstly, know your requirement. Understand why you need to make an investment and the money you have to invest. Hence, set your financial goals.
• Next, you need to make sure that you know which fund house to choose. Choose the one with high performing SIPs and a good manager.
• You should consider the current market trends, and understand if your chosen SIP is stable or not.
• Lastly, you need to consider how much money you would like to invest every month.

With that in mind, make sure that you fill out the forms with the correct details for the SIP account.

Are SIPs customizable?

When you invest in SIPs, you need to ensure that you know that what you are investing in. Furthermore, always remember that SIPs can be customized as per your choices and needs. You can invest in the SIPs:

• Monthly,
• Bi-monthly, and
• Fortnightly.

An investor can look for the options that suit them the most and choose to end the SIP when you meet your financial goals.

Some Common Myths

• Investors believe that SIPs are only for the small investors whereas, in reality you can invest large amount of money as well. However, this has to be divided into different amounts.
• SIPs and mutual funds are not the same thing which is often confused. Precisely, SIP is a tool to help you regularly invest in mutual fund schemes of your choice.
• Enrolling for SIP means that you are enrolling through NACH (National Automated Clearing House) mandate from NPCI (National Payments Corporation of India). Since your bank account details are already mentioned, the money is deducted from the balance of your account. Even if you miss a couple of instalments or payments, you have nothing to worry about. You see it is not like loan EMIs where you will be penalized to miss out on a payment. Even if the account balance is not maintained, the folio number remains active.

What else is there to know about SIPs?

• There are different types of SIPs in the market. You need to make sure that you find the scheme that suits your financial requirements.
• You should consider taking care of your requirements through research. Make sure that you look at the market, as well. Just because SIPs are easy to handle does not mean that you can ignore the market.
• You should make sure that the fund house that you choose has a good reputation, or else you may end up losing your money or getting low returns.
• Also, make sure that you have an eye on the recurring expenses and maintenance charges of the same. High recurring charges will only reduce the number of returns you enjoy later.
• Understand how the return rates affect your investment. Before you make a choice and invest in SIPs, you should consider learning about return rates at first. Calculate the interest rates, and find what you would get beforehand through SIP calculator.

SIPs can be used to meet many investment goals. You can plan your retirement or you could make use of the money to buy a car, the applications are many. You can find various options, and different schemes to get better results. Always remember to set a financial goal first, and then you should make a wise choice accordingly.

Information on SIP (Systematic Investment Plan)

Simply as drops of water make an ocean, small but normal investments can cross an extended manner in constructing wealth over a period of time SIP (Systematic Investment Plan) is a way of making an investment a hard and fast sum, often, in a mutual fund scheme. SIP (Systematic Investment Plan) permits an investor to buy gadgets often on a specific date of the month. this may help in constructing wealth inside the long time.

How to strart sip investment online | Image Source : flickr.com

The best mutual fund 2018 is Kotak Mutual Funds. It is awarded by CNBC TV 18. If you want to invest for a longer period, SIP (systematic investment plan) is the best and safest plan to invest. The proper procedure for how to start sip investment online is given on Kotak MF (best mutual fund 2018). All you need to do is decide your investment amount, select the frequency, select date and choose a Mutual Fund option. They also have the best options for mutual funds which will ensure wealth and capital generation.

SIP (Systematic Investment Plan) may additionally help you acquire just that. it's far an investment facility where you deposit as low as Rs. 100/- regularly each month inside the Mutual Fund scheme on the then prevailing NAV (internet Asset value). NAV of the schemes may match up or down relying upon market situation. benefits of SIP (Systematic Investment Plan).

No want to time the markets
Consider, if you could continually choose the proper time to shop for and sell. but, timing the marketplace is a time-ingesting and risky project. via disciplined and everyday investments, you could stop traumatic approximately while and how much to invest. In short, it eliminates the want to actively track the markets. SIP (Systematic Investment Plan)Rupee value averaging

Considering that your investments are spread regularly over a time period, buying fewer gadgets at some point of rising markets and shopping for more gadgets during falling markets reduces the average cost consistent with a unit of your investments - this idea is called Rupee value Averaging

Do you really need a Child Education Plan?

Child Education Plan | Image Source : Pixabay.com

Yes, you do! here's why - at the existing charge of inflation, the ever-hovering costs of training worry us all. nowadays, a typical MBA route from a pinnacle commercial enterprise college can value anything between Rs five to Rs 8 lakh. taking into account the existing inflation price, the training value will only rise within the future.

So, 10 years from now in case your child wishes to pursue MBA, you will need at the least Rs 25 lakh to begin with. apparently, the value will be unbearable till you begin making plans for your child's education nowadays. it is wherein an infant plan acts as a savior and enables you out.

Corpus for baby's schooling by Child Education Plan

In spite of minimum top rate fee, baby plans are able to provide as a great deal as 10 times the quantity paid inside the baby training plan. This lump sum amount in child schooling plans can be fundamental utilized closer to training expenditure. A baby training plan is often sufficient to pay for college training, and even better education out of the country. The money available from a toddler training plan relies upon on the terms and situations of the plan and on the amount, one has invested in it by using way of charges.

A Kitty for clinical treatment of the kid by Child Education Plan -

Child Education Plan additionally permits the choice of taking flight money at some point of the tenure of the kid funding plans. this may be used for scientific remedy of the kid whilst she or he falls ill. Such partial withdrawals are available in very on hand whilst the kid is hospitalised due to an ailment, minor coincidence or a more critical clinical condition. The high-quality infant plan facilitates to lessen the monetary burden because of clinical expenditure and such payouts act as an add-on for one's health insurance plan.

Helps the child inside the Absence of figure(s) - Child Education Plan

loss of life does no longer come with invitation and no quantity of coaching can go away on ready for such an occasion. The outcomes are more so for the harmless baby. The death of the figure(s) causes extreme trauma to a baby and may leave his or her future striking by way of a thread. The insurance enterprise offers a top class waiver if the figure (i.e., the insured) passes away all through the coverage time period of a toddler plan. The top rate waiver gain often comes built into toddler plans. If no longer, one need to genuinely choose this rider. the child gets a lump sum amount promised on the time of purchasing the Child Education Plan and does now not have to pay balance top class. The rider enables the coverage to continue with none breaks and passes the economic burden of remaining top rate to the insurer.