What are the benefits of SIP?

SIP Mutual Funds

SIP or ‘systematic investment planning’ is a disciplined way of investment and today, you can start your investment or SIP with INR 500 per month only. You set aside a fixed amount every month out of your income or salary and invest in a SIP at regular intervals. There are a lot of factors which should be considered while selecting an SIP like past performance, growth index, beta of a portfolio, and other factors affecting the portfolio directly and inversely. It also reduces the risk by diversifying your portfolio meaning if your risk appetite is high than you can choose a more equity concentrated SIP otherwise if you have a moderate or low risk appetite than you should go for a SIP which has debt and equity both. In this case, you can choose Kotak Mutual Fund as SIP investment plans which ranges from high to moderate risk and also from long term to short term perspective.

Benefits of SIP mutual funds:

• Easy to Invest- SIP mutual fund can be easily set up online from the comfort of your home. All you need is to choose the right mutual fund, the amount you want to invest, select the installment date, provide your bank and security details, and you will get the details of your investment or schemes on your online dashboard. Kotak Mutual Fund has made it easier for customers to invest, and you can easily start your SIP account by entering your phone number, email ID and PAN number.
• Cost Averaging- SIP deals with market volatility in a systematic manner. One of the biggest benefits of investing in SIP is mitigating the market volatility by cost averaging. In cost averaging you buy more units of mutual funds when market is down. This means you’re investing at all prices and when the market goes up or down the value of your investments is increasing.
• No Lump sum Investment- A SIP can be invested for as less as Rs. 500. You don’t need a hefty amount to start SIP. You can invest as much as you like depending on your savings or income. Even you can also get the tax deduction from selected tax-savings funds or schemes.

An SIP can help you meet your financial goals and you can also secure your retirement with a SIP investment. An investment in a government security like a bond or certificate will have lower returns or an investment in shares will have higher returns or lower returns associated with volatility. If your financial goals are aligned with your SIP then you will reach your financial goals irrespective of the market movements.

Learn How To Invest In Sip – What SIP Is And How To Invest?

SIP or Systematic Investment Plan is basically the method of investing in a mutual fund scheme of a company. It is a process where the person has to invest a fixed sum of money at particular intervals. The best part is that the frequency of investment can be decided by the investor. It can be daily, monthly or even weekly. Either way, the entire process is a compounded process in which the invested money grows gradually. In short, the process is safe, secure and gradual but it does not involve the risk elements of other forms of investments.

How To Invest In SIP | Image Resource: Shutterstock.com

SIP allows their investors to buy only one unit at a time every month, on a particular date. This way, the investors can figure out a good investment and saving plan for themselves.
This article is for the people who have doubts regarding how to invest in sip.

Start SIP from your home today – Know the procedure

If you plan on investing in SIPs then it is probably the best decision you could take right now. People are shifting their money from other forms of investments into SIPs because the gamble is nil. Also the ECS (auto-debit system) ensures the investor doesn’t have to worry about investing the money, it is automatically debited. If you want to open an SIP account online then you have to follow the steps mentioned below:

1. First of all, you need to become KYC compliant. You can do that by filling up the KYC form, submitting the PAN card details, address proof and a passport size photograph. This is a one-time procedure and can be done online, from your home as well. That process is called the eKYC.
2. The next thing to do is check the details of all the mutual fund companies around you that allow SIP investments and then choosing the one most suitable for you.
3. Then, you need to fix on a particular amount of money that you would invest at fixed intervals.
4. Then, you need to fix the frequency of investment (daily, weekly, monthly, etc.) that would not be a burden on you in any way.
5. The final step is to submit the form to the company or the intermediaries who have helped you open the SIP account (say AMC or Asset Management Companies, in case of direct investments).

Hence, the complex procedure of opening an account for SIP investment has been broken down into 5 major steps and simplified for you so that you know how to make an investment in sip like the back of your hand.

7 Mistakes One Should Avoid While Selecting The Best SIP Plan In Mutual Fund

While investing in mutual fund scheme via SIP, there are a lot of mistakes that investors make and usually are not aware of them. Here are common mistakes that one should avoid when they look for a SIP plan.

Best SIP Plan in Mutual Fund | Image Resource: Shutterstock.com

Investors usually check the following three aspects while looking for the best SIP plan in mutual fund investment namely:

• High returns
• Risk factor
• Tenure

While these factors are totally essential to be checked before investment there are also other factors that need to be considered to avoid loss of capital due to due to market fluctuations. Following are the seven mistakes an investor makes while selecting the best SIP plan in mutual fund investment.

1. Selecting the wrong mutual fund scheme
Before making an investment one needs to define their financial goal, risk appetite. Make sure you carry out thorough research on different mutual fund schemes available in the market before you choose the right one. For instance, you select a wrong scheme for a long tenure of investment you might face major capital loss and destroy your portfolio.

2. Making a higher investment
Since SIP’s are flexible make sure you study your financial situation and choose an amount which you can easily invest throughout the tenure. Make sure you start with a small amount as the best SIP plan in mutual fund investment allows small amount investments.

3. It is not a small investor’s thing
One myth that is highly associated with SIP is that it is only a small investor’s thing. This is totally wrong.

4. Short term investment
This is another misconception regarding SIP investment. Instead it is advisable to make long term investment to derive maximum returns.

5. Investors set unrealistic goals
One common factor highly associated with a SIP is that the young investors set high financial goals and repent them later. It is advisable to not to expect unexpected returns on your investment, instead aim for moderate returns for longer period of time.

6. Investors Choose dividend over growth
A lot of investors make this mistake, they choose dividend over growth. Study both the factors, you can also choose between both the factors alternatively over time to reach your financial goals.

7. Investors do not boost their SIP
There are often times when you make extra money and it is advisable to make lumpsump addition to your SIP. This boosts your investment at the same time when there is an emergency and you can earn from it.

How To Buy SIP Plan Online To Make Investments Into Funds That Gain High Returns?

Buy SIP Plan Online | Image Resource : Shutterstock.com

When you look at the many money savings schemes, the most attractive is the mutual funds. Why? It gives you the opportunity to invest into different types of funds, so you can put money into those schemes which offer the maximum returns. The money gained at the end of the investment tenure is very high, enabling you to meet immediate and also big expenses. Furthermore, the returns are certainly more satisfying what is gained through bank fixed deposits or taking an LIC policy.

How To Buy SIP Online?

Today, you do not have to go to a mutual fund company to initiate investment transactions. They can be done through the Smartphone by getting a mutual funds account. With this account, you can track your funds investments at any time and from any location. Managing them online saves time and efforts. Here is a look at how to buy SIP online:

• Check out sites that enable you to buy SIP online and select one that is suitable for your needs
• Fill their online application form with necessary details and submit along with proof documents to the site
• Get your login id and password to access your account and start investing into the SIP you want

Check out Kotak Mutual fund which offer various types of schemes into which you can make investment that brings significant returns. For example, if you look into their varied equity funds, you will find them to be very diverse in the type of investments that they put your money into. Almost all are open-ended so if you want to exit from many fund at any time, you can do so right away and move the money to another Kotak fund. Those who are specifically seeking tax savings investment schemes should look into their tax saver fund which invests into equity and equity related securities through which investors can get tax rebates. If you check out their debt funds, there are many investment options from which you can select what is optimal for your investment needs.

You can easily make investment into any Kotak fund of your choice by opening an Kotak online investment account Details of each fund is given in their site and an easy ‘invest now’ option button is available that you can click to initiate investment into any particular fund. Invest now and reap rich financial rewards in the near future.

Common Myths About SIP That Can Affect Your Next Investment Plan

If you are planning to invest in a mutual fund scheme via SIP, there are a certain things one should know. When it comes to buying stocks, it is imperative to choose the right scheme. Otherwise, you might be stuck with an investment where you will only incur nothing but loss.

SIP Investment Plan | Image Resource : Shutterstock.com

Make sure you have carried out necessary research about SIP. Before investing in stocks via Systematic Investment Plan, here are a few common myths one should avoid

1. SIP is suitable for small investors.
SIP does not mean Small Investors Plan and therefore the misconception that only small investors can benefit from SIP is totally wrong. Whether you are investing a small amount or huge lump sum the benefits and returns are totally dependent on your investment and the tenure.

2. Missing an SIP payment leads to penalty.
While SIP is a flexible and convenient investment plan in which a fixed amount is deducted from you savings account on weekly, quarterly, monthly basis depending on your plan, there is a major myth wherein if you miss an SIP payment you might incur penalty and it might also lead to deactivation of your account. While SIP investment is totally investor friendly it is up to them when they want to stop the payment. Also, no penalty is levied on missing an SIP installment.

3. It is not good to start an sip investment plan when the stock market is high
Most of the investors always think that timing of investment in the market is important, however that is not true. The duration of time in the market is what is important. When it comes to an sip investment plan there is no such right market time and one can make an investment anytime they want. One important thing to keep in mind is an SIP shields an investor with its systematic operation during market fluctuations.

4. Investing in an SIP means assured returns.
While investors think there is no market risk in sip investment plan and it does not lead to capital loss. Thus it does not mean an SIP gives you guaranteed returns. While a sip investment plan surely helps you gain benefits by investing in stocks when market prices go up and down, it surely helps you by averaging out the prices. While it surely reduces the risk to some amount it does not mean there is absolutely no market risks involved in an SIP.

Kotak SIP Calculator – An Easy Way to Calculate Your Returns

Systematic Investment Plan or SIP refers to the different investment schemes provided by the mutual fund companies. A person who invests in SIP would have to invest fixed amount of money periodically (annually, quarterly, monthly or weekly) into the fund they have chosen. It is very beneficial for retail investors since SIP allows a passive and a disciplined approach towards investing which creates wealth in the long term (by the process of compounding). One of the great things about investing in SIP is, your investment in the mutual funds remain unaffected by the market volatility.

Kotak SIP Calculator | Image Resource: Shutterstock.com

How does the Kotak SIP Calculator work?

Systematic Investment Plan is a great way of achieving your long-term financial goals. The Kotak SIP Calculator helps you in calculating the wealth gain and also the expected returns that you can achieve from your SIP investment. The calculator gives you a rough estimate of the matured amount for any kind of SIP investment that you do. This amount is calculated on the basis of an estimated annual return rate.

The Kotak SIP Calculator consists of different options and you’d have to choose each one of them. The first option is of course the type of investment you would want to choose. There are several different ones; you could take the advice of your financial adviser in order to make the right decision. You then have to input the installment amount that you would like to invest at every interval. The frequency ranges between monthly and quarterly. The last thing you’d have to input is the date when you are starting your SIP investment along with the end date.

Benefits from Investing In a Systematic Investment Plan

Investing in a SIP allows you to average your purchase cost while maximising your returns. Investing regularly in a SIP over a certain period of time regardless of the state of the market, allows you to get more units when the market is low, and get less units when the market is high. This helps in averaging out your purchase cost of the mutual fund units.

Another benefit that you can reap from SIP is from the power of compounding. Investing over a long-term period and earn more returns from the returns you get off your investment. This is how your money would start compounding. This is helpful in building up a large aggregate for your long-term financial goals with small investments regularly.

Therefore, take the help of Kotak SIP Calculator in order to make an estimate of your returns and start investing in Kotak Mutual Fund right away!

Kotak Mahindra SIP Plans: Your Planning Guide For a Better Future

Do you want to plan your financial gains for the future? Then, it is mandatory to take the right step towards a fruitful investment plan. Mutual funds have been the choice of many when it comes to gaining good returns through investment. Even though some flourish, some don’t due to wrong choices in making investment. If you wish to gain a steady income without scorching a hole in your pocket, then SIP plans would be the right choice for you.

Kotak Mahindra SIP Plans | Image Resource: Shutterstock.com

What are SIP Plans?

The market is a tough place where you can either make or break the deal. If you are new to SIP, then you need to opt for a plan that will suit your requirement. Kotak Mahindra SIP plans are designed to suit investors of all kind. The investment plan is best suited for those on a shoe-string budget. One can also increase the investment amount over the years. With this scheme, customers need not worry about market fluctuations as it will not drastically affect the overall returns.

Types of SIP plans by Kotak Mahindra

Kotak mutual fund offers various types of schemes for investors of all kind. The first is the basic SIP scheme where you can invest a small amount as principal over a regular time period. It can be six months, one year or two years based on the individual requirements of the client. The investment amount can start with a low payment of about 500 rupees and can exceed depending on the choice of the investor. The amount can be changed to suit your specific financial return.

One of the other Kotak mutual fund SIP schemes is SWP – Systematic Withdrawal Plan. This allows the investor to withdraw the amount on a predefined time interval. The customer has to provide a one-time instruction to the management. This helps clients to get investment returns at a regular time interval. STP is another type of schemed provided by Kotak. In this scheme, clients have the options to shift from one Kotak Mahnidra SIP mutual plan to another by providing a one-time instruction.

Customers also have the options to switch either the appreciation amount or the fixed amount. One of the main benefits of this scheme is that you can make a minimum of about 6 transfers. You can also choose your preferred frequency be it monthly, quarterly or weekly payments. The facility to plan your own investment gives the freedom of choice, which is much wanted by every investor. Through proper analysis, you can invest in the best scheme and get a plethora of benefits.

Beneficial Reasons To Invest In SIP

Investing in SIP | Image Resource: Shutterstock.com

SIP – Sytematic Investment Plan is considered to be one of the most flexible and hassle free ways to invest your money via mutual funds. There are a lot of benefits to invest in SIP. Therefore we would be talking about various beneficial reasons to invest in SIP so that you can reap the best crop at the end of the season. With SIP in hand you will not have to worry about your future.

Benefits of investing in SIP

• Start From The Small
  Unlike many other investment plans, when you think of investing in SIP, you really don’t need to worry about the capital as you can invest with a minimum of 500INR and get a benefitted amount at the end of the plan. It is obvious that if you invest more, you would get more benefit but people who can’t afford to invest much, investing in SIP is beneficial for them as well.
• You Don’t Need To Take Any Tension
  When investing in SIP, it is obvious that all your funds will be taken care of by the experts. They make sure that the research is done properly so that you always get informed about the best investment. Also, these experts keep tracking the market regularly which is where they come of as a great help. Once you start to invest in SIP, you no longer need to worry about these things on your own.
• The Average Cost Gets Reduced
  No matter what your financial status, a specific amount will be deducted from your bank account at a regular duration. Hence; you will have to keep money in your account for smooth investment flow. Since, you are investing regularly, the units will be bought when the net asset value is low(market is down) and no unit or less number of units will be bought when the net asset value is high (market is up).
• Nothing Is Hidden, Everything Is Like An Open Book
  As we all know that mutual funds is regulated by well reputed AMFI and SEBI. There are various rules and regulation which ensure the transparent fund investment. This makes all investors feel relieved as their money will be invested in safe hands.

Conclusion: SIP is indeed a good idea for your investment plans. There are various benefits one can get from this scheme, if he knows all the important things about SIP. Therefore, take time out and understand about investing in SIP and the benefits attached to it.

Why Is 5 Years The Best Time To Invest In SIPs?

Best SIP Plan for 5 years | Image Resource: Shutterstock.com

SIP is slowly becoming one of the best investment options for disposable income in many households. With just an internet connection and an amount of just five hundred rupees a month can make you eligible to invest into SIPs. Five year is often considered the optimum time to gain maximum from your SIP investment. It is seen in past that most of the mutual funds outperform their expected returns in the five-year period.

Systematic Investment Plans are the best investments giving high returns and are prone to market crash. They are being considered best options to achieve one’s financial goals. When you buy direct stocks, you need to have high visibility of how a stock is performing against market however a mutual fund is managed by a fund manager through a diversified portfolio. You can always research about how a fund is performing and how others funds have performed in past for the said fund manager before giving out your money to invest into SIP.

Key things one should keep in mind to select best SIP Plan for 5 years —

• Most of the mutual funds perform their best in five years lock-in period.
• One should have a clear financial goal for the term of five year and returns should be calculated after adjusting the applicable risks.
• Smart investment is done invest into equities linked SIPs.
• Online arena helps you invest and manage your SIPs well within this period. You can see how your fund is progressing with time and the fixed amount is auto debited from your account every month.
• The best SIP plan for 5 years is the plan that helps you achieve your financial goals.
• However this could be different for different people.
• Mutual funds for SIP fall under various categories to instigate different financial goals.

Benefits of SIP —

• Being a disciplined way of auto regular investment, it allows one to feel free and relaxed.
• You enjoy power of compounding. i.e., you not only your investment keeps increasing, inheriting a huge return but also brings you surplus funds at the end of locking period.
• You get the benefits of averaging, i.e., in certain months you have high market hence you buy only few units based on its present NAV and in other months when the NAV is low, you buy more units of the fund, thus averaging the market impact on your investment.

All you need to know about Systematic Investment Plans

SIP | Image Resource: Shutterstock.com

A SIP or a Systematic Investment Plan enables a financial specialist to put a fix amount of cash consistently in mutual funds. One, it teaches you financial lessons. Two, it encourages you to contribute consistently without grappling with announced inclination, a record level, and so on. And not being too heavy on pocket, you can start investing into mutual funds through SIP with at least Rs. 500 only.

Dreams can be accomplished if you work towards them. Nevertheless wealth building is the same. A Systematic Investment Plan (SIP) encourages you to do only that. With SIP, you can put a settled sum in shared subsidizes well-ordered month to month or quarterly over some undefined time frame, in this manner averaging out your cost of contributing and profiting by the energy of intensifying.

Benefits of SIP

• All things considered, it is the time in the market and not timing the market that encourages you to make a lot of money for your fantasies for life. SIP is a strategy for investing a fixed amount of money, frequently, in mutual funds. It enables one to purchase units on a given date every month with the goal that one can actualize a sparing arrangement for themselves.
• The greatest favorable position of SIP is that one does not need to time the stock market. In time the market, one can miss the bigger rally and may remain out while markets were doing great or may enter at a wrong time when either valuation have topped or advertises are very nearly declining. the best
• The best relief SIP offers is the automated payment. In case you miss to make the monthly payment, the decided amount will automatically be deducted from your bank account and securely transferred to your planned mutual fund.
• Unlike the Lump sum mode of investment, SIP allows you to start with the budget of your convenience, and as long as you wish to entertain the investment.
• Also that you don’t need to worry about the ups and downs of the market, since SIP always goes positive, bringing you good returns in future.

If there is a need of the ‘unending SIPs,’ financial specialists do not need to pick the end date of the SIP. Once the objective is met, the financial specialists can stop the SIP by sending a composed correspondence to the reserve house.