SIP, also called Systematic Investment Plan, is a process based on the procedure of the investor making small, regular investments (monthly or quarterly), instead of the whole payment being done at once.
The structure of SIP offers the investor the benefit of compounding and at the same time provides the flexibility of investing as low as Rs. 500 per month. If any investor wishes to invest more they can do so according to their long-term goals and investment strategy. This particular investment option is preferable as it does not burn a hole in the pocket and at the same time inculcated a habit of regular saving. The ups and downs of the market often leave it unbothered as SIP is an investment made on fixed dates, thereby becoming immune from the turbulent nature of the market.
Benefits of SIP
If long-term wealth gain is what you wish for then investing in mutual funds via Systematic Investment Plan is the sure road to take.
- You can allot a fixed amount on a periodical basis to mutual fund schemes. This will help fix a habit of money saving and smart investments can be made.
- Investors can reap the benefit of rupee cost averaging, compounding, and discipline investing. Through this all IIFL guides you at every step to wisely invest in mutual funds and make the best use of your hard-earned money.
- The stock market is a volatile area with no surety of its sustainability, however since a Systematic Investment Plan is an allotment of fixed amount on a scheduled basis, your investment remains guarded from the turbulence of the market.
- The amount of the SIP gets debited automatically to the investors account and hence they have the free reign to increase, decrease, or stop the SIP at any given time.
Even among the retail investors the SIP is gaining popularity as it is becoming a way to gain wealth in the long-term. Now that we understand the advantages associated with SIP, let us walk through the process of starting one.
How to Start a SIP?
IIFL acts as an intermediary that helps you invest wisely. One of the leading finances and investment services company in India, IIFL makes the procedure of starting a SIP easier through the services they render.
SIP (Systematic Investment Plan) can be started either through their app, Mutual Fund by IIFL, or through their website, IIFL Mutual Funds Website (https://mf.indiainfoline.com/MFOnline/).
Follow the simple 5-step procedure mentioned below to start your SIP with IIFL:
- Select a Mutual Fund. The app and the website come in very handy as it provides you useful recommendations from which you can select where you wish to invest.
- Fix an amount. Perhaps the greatest benefit the SIP offers is that you can invest as low as Rs. 500 per month. This flexibility is a relief as you won’t need to invest heavily in the first go and can increase your investment as you learn more about the playing field.
- Decide the date on which you wish to make the payment; IIFL offers the flexibility to choose a date of payment according to your convenience.
- Choose the SIP period, that is how frequently you wish to make an investment. It can range anywhere from a monthly to a quarterly investment.
- Select the payment method, it can be either through bank or through ledger. In case the payment is through bank, you must submit a signed bank mandate form to the address mentioned on the form itself. If you choose to invest through ledger, that is IIFL, maintain the balance two-days in advance to the SIP date.
One who fails to plan, fails at life. Plan your SIP with IIFL to cruise through life.