what are sip investments?
Systematic Investment Plan (SIP) is where you invest a fixed amount of money every month into Mutual Funds thus contributing towards financial goals. You can start with small amount on monthly, quarterly or annual basis which will be helpful in the long run. It is ideal for the first time investors.
- First thing is to get the Know Your Customer (KYC) completed.
- Select a Mutual Fund scheme.
- Provide basic investor details.
- Complete new purchase application form.
- Confirm purchase.
- Payment gateway.
FEATURES
- You can select the date of your choice for deducting the SIP amount depending on the Asset Management Company.
- The investor can do SIP through Electronic Clearing System (ECS) in which he sends instruction to the bank to auto allow debit of SIP amount on a certain date of every month.
- When the Mutual Fund NAV is high you get lesser units but when the NAV is low you get more units.
BENEFITS
- SIP can be done as low as Rs.500 or Rs.1000, it can be increased or decreased at any point of time.
- The cost of starting a SIP is nil.
- Long term financial goals can be achieved with SIP
- SIP reduces average cost of purchasing financial asset over time.
- There is no fixed tenure for running SIP, but minimum of 6 months before redeeming.
- SIP is less risky when compared to one time Investments.
“To be successful you need to start investing early which helps in earning much higher returns.”
SIP is a flexible means of making mutual fund investments online which is available on our website www.instaemi.com to make the transactions smooth and easy for the investors.
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