Investkwik

What is SIP?

Systematic Investment Plan is a tool that helps you to create wealth, by investing a small sum of money over a month (or a fixed period of time). In SIP, a fixed amount of money is debited periodically by the investors in the bank and is invested in a specific plan.

What are the benefits of SIP?

Mutual Funds can be classified into three wide categories: It helps you to inculcate financial discipline of your money. It helps you to put the investment plans on your priority list. Early & regular investments can help you to compound the wealth. It helps you to average out the capital invested and thereby reduces the risk. Rupee Cost Averaging is the significant reason for choosing the SIP, allowing to gain maximum benefits on his/her investments over time.

How can I enroll in the systematic investment plan?

MySipOnline offers you a facility to get enrolled in the systematic investment plan (SIP) on a monthly or quarterly basis. You can deposit the cheque periodically or the bank will automatically debit the amount from your account. We will provide you a statement of your account on every transaction.

Can I start SIP at any time or when the market is high?

SIP can be started at any point of the time and at any state of the market. The idea of SIP is to avoid timings of the market and start investing with a purpose. Due to rupee cost averaging maximum benefits are attained irrespective of the market's condition.

Is there any upper limits in SIP investments?

No, this is a misconception that SIP investments are only done in the case of small amounts. You can invest as much amount as you want, there is no upper limit to the SIP amount. Due to its compounding ability big investments can lead you to large wealth, so investing big amounts is rather a good option.

Can I miss an SIP?

Yes, you can. Many investors think that if they miss an SIP, then their account will be de-activated, but it does not happen. Even if you miss an SIP due to insufficient amount of balance in your account, then don’t worry you can just pay it next month, and your SIP will continue as normal. When you are starting with an SIP, don't think too much about the future. Even if you miss some of the SIP's due to financial crisis, it will be recovered in the next SIP.

In which mutual fund should I start SIP?

All mutual funds can accept both SIP and lump-sum investments. If you want to invest in both SIP and lump-sum on the same day you can do it. And if you already have a SIP account and wish to invest more amount in that, you can do that. A detailed portfolio of your investments will be available to you. If you wish to have a second SIP in the same fund you can do that too.

How to shorten SIP duration?

You need to send a written and signed application to the fund management team before the next SIP comes. Or you can ask for the same request, online. Before stopping the SIP, you will have to complete a minimum investment period, which is 6 months for most of the organizations. To avoid the shortening of the investment period of SIP, start it for 6 months to a year period. Once you are satisfied with the SIP, extend the investment period.

How can I extend the SIP duration?

At the end of your SIP completion period you will get a renewal form, fill that to extend the SIP duration. If you want to extend the duration of the SIP before completion of the given period, then you can just fill up the SIP form with the existing portfolio number and the new time period. To avoid the shortening of SIP duration, start initially from 6 months to a year.

Starting SIP through brokers will be costly?

It is not costly, if your broker does not charge for investing in lump-sums or systematic investment plan (SIP). But if the broker charge you for the investments, then it will be costly for you to invest. Better to choose a broker who invests free of cost in SIP. Another option is not to use a broker, you can directly invest in the funds so that any extra charge is not taken.

Is SIP a risky investment?

Most of the investors think that investing in SIP is a risky affair as the value of money keeps on fluctuating with time. As compared to any other mode of investment, SIP is less risky as you will invest periodically, amount of investment is of your choice and the minimum period of investment is only 6 months. You can withdraw the money at any point of time.

When can I withdraw the amount if I have invested in a locking period?

If you had invested the amount in tax-saving or locking period, then minimum time is 3 years for the redemption of the amount. So consider it as a one-time investment at periodic intervals. Each of your funds will be locked in a period for 3 years from the date of your purchase. If you have started to invest in SIP for a fund from 6 July 2015, then you will be able to redeem the units purchased with your first investment, only on 6 July 2018.

How do SIP works?

It is a simple procedure, tell about yourself to the experts and they will help you to select a proper plan according to your requirements & capital. They will get a perfect plan for you as experts have seen market for a long time. Invest periodically in the SIP and enjoy the great benefits.

What is Amount based SIP?

Amount based SIP facilitates you to invest a fixed amount of your choice at a predefined frequency for a definite period of time. For e.g. if you have invested Rs. 5000 in a fund for a period of a year, then you will have to deposit Rs. 5000 every month for a year.

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