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Kotak Mutual Fund – How To Invest In SIP Plan?


Systematic Investment plan or SIP has been gaining popularity for the past few years. More individuals are getting keen on investing in SIP because of all the benefits that they can reap off of this in the long run. Below is a quick guide that will help you understand how to invest in SIP Plan and what the benefits are.


Before you start off you need to understand what exactly is SIP. Systematic Investment Plan or SIP allows a person to invest a fixed amount consistently in a mutual fund scheme. 


How to Invest In SIP: The Basics


If you are interested in how to invest in SIP with Kotak Mutual Fund then there are a few things that you need to know:


  • Getting Your KYC: This is the first and the most obvious step in starting a systematic investment plan. Completing your KYC or Know Your Customer done is important. You have to complete this only once and then you will be able to invest in any sort of mutual funds. If however you do not have KYC, then visit the nearest KYC centre with all the original documents (PAN Card, photograph, KYC form and an Address proof). 
  • This process is however not needed if you were to invest through a broker, but it is not recommended since that is a very expensive process. 
  • Planning Your Funds: If you were to let your broker choose the funds for you then it is very likely that you will get stuck with a newly launched or a close ended high cost fund. This is obvious since the broker would want to sell you the most expensive funds that there is, so that he can earn the commission. So it is always wise that you take the help of a financial planner instead of relying on a broker.
  • Planning Out Your investment Strategy: If you were to pick up different investment plan from the same category then it would be of no use. Before you choose in which investment plan you plan on investing your funds, it is important to know the different kinds of funds. There are 5 categories – SmallCap and ELSS, MidCap, LargeCap and Flexi/Multi Cap.
  • Creating Your Portfolio: The financial adviser will help you choose the right kind of funds that you should invest in. If you were to invest in a LargeCap your returns and risks will be obviously very low when compared to you investing in a SmallCap. If you were to look at it from a long term perspective then it is always recommended that you invest in a SmallCap in order to get the most benefits.


These are a few things to get you started on systematic investment plans with Kotak Mutual Funds.