If you are interested in investing your money then mutual funds is a good option. You can invest in mutual funds regularly. Systematic Investment Plan (SIP) allows you to invest a fixed amount of money in mutual funds regularly.
You can begin with identifying your goal. Once you have a goal to reach you should invest accordingly. Investing small amount of money regularly over a period of time can help you reach your goals.
Once your goal is fixed you should select the funds you want to invest in. There are different funds and you should select the right fund to invest in as per your requirements. You can invest in the best performing funds. But funds that help you reach your goals and suit your needs are the best funds.
You can consult a financial advisor who can guide you on how to invest in sip investment plan.
To start your SIP you have to fill the required forms and submit it online or to the AMC. You can start the SIP on any day of the month. When you register for SIP you get a account confirmation statement form the AMC. For the subsequent installments also you get account statements. There is a minimum SIP amount and there are minimum number of installments required. You can invest quarterly or monthly.
Kotak Mutual Funds offers SIP investments in its mutual funds. As there are different funds selecting a fund to invest in can be difficult. It offers financial advisors who can guide you to invest right.
Why SIP?
There are many benefits of investing through SIP. They are:
- It is a convenient automated process.
- It brings discipline to your investments as you invest regularly.
- It offers power of compounding. The more the investment period the more the effect of compounding.
- You can buy more units when the market is low and less when the market is high as you invest a fixed amount. This brings down the average cost of acquisition of units.
Calculators
There are calculators available which can help you calculate the amount you can reach for a given SIP, the expected rate of return and the time period. The calculator shows the amount you reach at the end of the investment period. This is useful in calculating the amount you need to invest to reach your goal.
Kotak Mutual Funds offers such calculators online to help you calculate the right amount.