Find the best SIP to invest in India

Mutual funds are a smart tool to invest. If you want to reach your financial goals then you can invest in mutual funds. A simple and convenient way of investing in mutual funds is through Systematic Investment Plan (SIP). 

Best SIP to Invest in India | Image Resource: valuesearchonline.com

Systematic Investment Plan (SIP) allows you to invest a fixed sum of money regularly in mutual funds. You can invest small amount of money regularly over a period of time to reach your financial goal. 

You have to decide your financial goal before you start to invest. You have to decide your risk taking ability, the investment time frame for which you want to invest and you have to find the mutual fund products that suit your needs. You also have to decide on asset allocation to diversify your funds. Once you have decided on all these points you can reach your financial goals with discipline.

You can find the best sip to invest in India if you have decided on the above points. The best mutual funds are those that suit your needs and help you reach your goals. If it gets difficult to decide then you can consult a financial advisor. The financial advisor can guide you to India’s best sip to invest.

Investing with a goal

If you are investing to buy a car or home appliance or create emergency funds then you can invest for 0 - 3 years. This is called short term investment. The best funds to invest for this are liquid and debt funds.

If you are investing for kids marriage or foreign trip for family then you should invest for 3 - 5 years. This is called midterm investing. The best funds to invest for this are the hybrid funds.

If you are investing for kids education, or kids marriage then you should invest for 5+ years. This is called long term investment. The best funds to invest are the equity funds.

How to start SIP?

To start an SIP you have to fill and submit the required forms. You have to fill a KYC form too. You can do your first SIP transaction. You will get an account confirmation statement confirming your first SIP. For the subsequent installments you will get consolidated account statements. You can start an SIP on any day of the month but the subsequent installments have to be done on given dates.

You do not have to write a cheque for every installments you can directly debit the money from your bank account periodically.