Homemaker or start up owner…everyone can start an SIP

Starting an SIP investment is child’s play when you can do it online and explore all the options available to you. This article explains the SIP’s utility and how it can benefit every kind of investor.

Over the years, legions of investors have become loyal converts to the SIP (Systematic Investment Plan) method of investment. The SIP is one of the most affordable investment options today, offering a wide range of funds for every kind of investor, whether a novice or an experienced one.

Everyone can start an SIP investment…

The Systematic Investment Plan (SIP) provides an affordable access to the best mutual funds in India today. Ask your investments advisor how to start a SIP, or get in touch with the fund house directly via their website. Consider the following key benefits of starting a SIP:

* You can research the best ones online and start the SIP directly with the fund house.

All the information you need regarding the mutual fund and its current NAVs is already there on the fund house’s website. You can look for the best mutual funds and how to start a SIP in them. Once you have all the information you need, you can start the SIP online. Do use a SIP calculator to crunch the numbers correctly. You will need to give personal ID proof, source of income, PAN, Aadhaar number, bank account details, etc. to get the investment started.

* It is an affordable way to buy a mutual fund.

You might be a homemaker, a student or a self-employed businessperson with irregular income. Your means might be limited, but that does not mean that you cannot invest in mutual funds. The Systematic Investment Plan helps you invest in the best mutual funds at a cost that is affordable to you. Start the SIP with as little as Rs 2,000 per month. This way, you don’t need to make a lump sum investment upfront and you can get access to the best mutual funds on offer.

* It is a flexible way to invest.

SIP investments are quite flexible. You can pay as much you wish to every month towards the fund. At the same time, you can easily opt out of it if you feel that the investment is not going as you wanted, or that you do not wish to spend money on it any more. Most fund houses do not charge any exit fee when investors opt out of the mutual fund. Besides, you can choose to invest monthly or quarterly based on the fund scheme you choose, and you may even increase the payment amount at a later date if you so wish.

* It keeps you from speculating in volatile markets.

The SIP investment is the best way to keep speculation out of the mutual fund equation. The SIP buys more units of the fund when prices are low, and less units when prices rise. Besides, the average cost per unit is quite low. Besides, you don’t need to have a deep knowledge of the markets to invest in the SIP.

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