Starting your investment journey? Try SIPs. A Systematic Investment Plan (SIP) regularly invests a set amount into a mutual fund or another investment vehicle, such as monthly or quarterly.
How to start SIP?
To start a SIP, you must first research different mutual funds or available investment options. You can visit the mutual fund company’s website or speak with a financial advisor.
- After selecting a mutual fund or investment choice, complete an application and supply information such as your personal information and investment amount.
- After accepting your application, set up the investment by submitting your bank account details. By doing this, the investment money will be automatically debited on the specified date
- You can invest as little as a few hundred rupees in a SIP, and increase or decrease your investment at any time. It is essential to pick a sum that you can afford to invest regularly on a regular basis.
- Choosing an investment frequency that works best for your financial condition and goals is critical.
How to manage a Systematic Investment Plan
Now that you know what is an SIP, here’s how you can manage your SIPs
- Monitoring the Investment: It is crucial to monitor your SIP regularly to track its performance and ensure that it aligns with your financial goals. You can check the fund’s NAV (Net Asset Value) and compare it with the benchmark index.
- What is a benchmark index?
A benchmark index serves as a reference point for evaluating the performance of an asset, investment strategy, or investment manager. Therefore, picking a benchmark that closely matches the security or strategy is crucial.
- Reviewing and Adjusting: Review the SIP every year, and adjust the invested amount and frequency per the financial goals and the current situation.
The main advantage of SIP is the rupee-cost-averaging effect, which means that you buy more units when the price is low and less when the price is high. This helps in averaging the fast growing stocks and reduces the risk of investing at the wrong time. Additionally, SIP helps in building a habit of saving and investing regularly.
The main advantage of SIP is the rupee-cost-averaging effect, which means that you buy more units when the price is low and less when the price is high. This helps in averaging the investment cost and reduces the risk of investing at the wrong time. Additionally, SIP helps in building a habit of saving and investing regularly.
Using SIPs is a convenient and effective way to save and invest for your long-term financial goals. Choose from more than 800 direct Mutual Funds using Fi.Money’s simple user interface. You can invest daily, weekly, or monthly using SIPs, which can be set up with a single-screen swipe. Fi.Money’s also provides 100 percent flexibility with no fees for late payments.