ET In The Classroom: SIPs in Mutual Funds
Systematic Investment Plan (SIP) is a popular tool for investing in mutual funds and building a long-term corpus. Data from the Association of Mutual Funds in India (AMFI) show that investors register SIPs of Rs 25,000 crore every month, reflecting rising interest in mutual funds.
WHAT IS A SIP? SIP is an investment option offered by all mutual fund houses, which enables an investor to put in a fixed amount of money at predefined intervals in a chosen mutual fund scheme. SIPs are offered in all fund categories — equity, hybrid, gold, international fund of funds or a debt fund. Many fund houses accept amounts as low as Rs 500. SIPs automate investing and help deploy money regularly into equities and debt without worrying about the ups and downs of the market. In the long run, investors stand to benefit due to rupee cost averaging and the power of compounding.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View Details» <div data-placement=«Mid Article Thumbnails» data-target_type=«mix» data-mode=«thumbnails-mid» style=«min-height:400px; margin-bottom:12px;» class=«wdt-taboola» id=«taboola-mid-article-thumbnails-114753231»>HOW DO YOU START IT? To start a SIP, first identify a fund scheme in which you want to invest. This can be chosen based on your risk appetite, time horizon and goals. You need to be KYC-compliant before beginning your investment. A SIP can be registered on the fund house website, registrar’s website, using online platforms or through a distributor. It can also be done offline by filling out a form and handing it over to the fun house or the registrar. You can decide the amount of investment and the date. Some fund houses allow you to choose any day of the
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