The new financial year has begun and many investors might be thinking of starting new investments. In case you are planning to invest ...
The new financial year has begun and
many investors might be thinking of starting new investments. In case you are
planning to invest in mutual funds then SIPs are the finest way to invest. There
are myriad of investors, who want to begin investing via Systematic Investment
Plan (SIP) in an equity mutual fund scheme, fear the paper work. Well, the
point is that you don’t have to tackle with papers or exercise your leg. The point is that these days you can even
start sip online too.
Of course, if you were thinking How to start sip then here you go. The foremost thing you require to do before beginning
an SIP is fulfilling the: Know Your Customer (KYC) need. KYC is a must to do
investment in mutual funds. You would have to submit an identity proof, address
proof and of course a photograph. You must also confirm your physical existence
via an In-Person Verification (IPV). Of course, you can finish all these needs electronically
through eKYC. Most of the fund houses have started catering this facility
through their website. You simply have to tap or click on the ekyc link and have
to follow the instructions given therein. Remember the exact steps for eKYC
differ mildly with every fund house. However, broadly the structure always
remainsthe same.
Basic Information
The system would foremost prompt you
to enter all the personal information in an online form. It shall include name,
date of birth, address, mobile number and so on.Then in the next step, you would
have to upload a scanned copy of your PAN (Permanent Account Number) card along
with an address proof.Once you have formed the account, simply login, pick the direct mutual fund appscheme, choose an SIP date and deposit
your request. Congratulations, this way
you successfully finish the procedure and make your sip account.
Working of sip
Once you decide to invest in the
scheme of a mutual fund via SIP, the decided sum is auto-debited from the bank
account (you require to mention your bank account from where the amount shall
get deducted). This is the amount that particularly is treated as a mutual fund
scheme. A specific number of units based on the Net Asset Value are handed over
to you and that is prevalent on the buying date. In case you are not in favour
of getting the sum deducted from your bank account, you can even handover
cheque coupled with the (filled) enrolment form. Also, the mutual fund will
deposit your cheque on the demanded date and simultaneously, credit the units
to the account you have along with the confirmation.
The earlier you begin to invest in
SIP the possible growth will get fruitful. Via SIP, once you invest the (same)
amount frequently over-time, you incline to purchase more units when the cost if
lower and vice-versa. Hence, the average cost per unit (or per share) is diminished.
Not to skip thatSIP ends up in catering reasonable returns in the designated
time.
Conclusion
So, if you haven’t pondered about
SIP so far, it is time that you give it a try.
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