Learn How To Start SIP Investments
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.
