• HDFC
• 26 Sep 2018
• Systematic investment plan SIP

HDFC, Tester

You can achieve your dreams only if you work towards them. Similarly, you can build your wealth only if you continuously work towards growing it. A Systematic Investment Plan (SIP) helps you do just that. With a SIP, you can invest a fixed amount in mutual funds either monthly or quarterly over a period of time. With the power of compounding and rupee cost averaging, you can reap huge benefits in due course of time. So, start investing through a SIP today and work towards achieving your dreams of stabilizing and growing your finance.

Mutual funds are, however, always safer than direct investments in the stock markets as they have access to the services of expert fund managers. To better understand how your mutual fund investments might perform, you can use the SIP Calculator to estimate potential returns based on your risk profile and estimate how much you need to invest to reach your goals.

 

Why investing in SIP in Mutual Fund is a good idea?

 

SIP or Systematic Investment Plan is a method of investing a fixed sum, regularly, in a mutual fund scheme. You can buy units on a given date each month so you can implement a saving plan for yourself. The biggest advantage of SIP is that you need not time the market. With SIPs, every time is the right time. This is because, in the long run, all the losses and negative returns will be negated. Rather than you timing the market, investing each month will ensure that you are invested at the high and the low also making the best out of every opportunity.

 

How to start a SIP in a Mutual Fund?

 

You can invest in a SIP mutual fund with a pre-determined fixed amount in a scheme every month or quarterly through post-dated cheque or other means. For this, you need to fill up an application form and a SIP mandate form, on which you need to indicate the choice for the SIP date (on which date the amount will be invested). Subsequent SIPs will be auto-debited through a standing instruction. You can submit these forms to the office of the Mutual Fund/Investor Service Centre or the nearest service center of the Registrar & Transfer Agent.

 

You don’t have to do much to start investing in SIPs. After you get your KYC or Know your Customer verification done, all you need to do is choose a fund. You also need to specify the amount that will be debited from your account to the Mutual Fund Account every month. This amount has to be in multiples of INR 500. You then give standing orders to your bank with the details of your bank account that is linked. Once this is done, the money will be auto-debited every month.