SIP Day

SIP Day refers to the chosen date on which an investor makes regular contributions to a fund scheme through systematic and automated payments. This method helps them build wealth gradually by investing fixed amounts at set intervals.

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SIP Benefits
Start SIP with as low as ₹1000
Start SIP with as low as ₹1000
No hidden charges
No hidden charges
Save upto ₹46,800 in Tax
Save upto ₹46,800 in Taxunder section 80 C
Zero LTCG Tax
Zero LTCG Tax^ (Unlike 10% in Mutual Funds)
Disciplined & worry-free investing
Disciplined & worry-free investing

What is the Day of SIP or SIP Day?

Day of SIP" or "SIP Day" refers to the specific date on which your Systematic Investment Plan (SIP) installment is automatically deducted from your bank account and invested in the chosen mutual fund or any other fund scheme. You can choose any day that works for you, but it's generally recommended to:

  • Align it with your income: Choose a day close to your salary credit date to ensure sufficient funds are available.

  • Pick a consistent date: Having a fixed day helps you stay disciplined and avoid missing installments.

How To Choose Your SIP Day?

  1. Align with your income:

    Choose a date close to your salary credit date to ensure sufficient funds are available in your account. This avoids missed installments and potential penalties.

  2. Consistency is key:

    Pick a fixed day each month (e.g., 1st, 15th, or your preferred date) to develop discipline and automate your investment process.

  3. Consider convenience:

    Choose a day that works for you and fits your financial routine. This helps you stay mindful of upcoming installments and avoid unnecessary stress.

  4. Flexibility options:

    Some platforms offer "Any Day SIP" allowing you to choose any day within a specific window (e.g., 1st-30th). This can be helpful if your income is variable.

  5. Day of SIP vs. Order date:

    Remember, the Day of SIP is when the money is deducted, while the order date is when it's actually invested (usually a few days later).

  6. Multiple SIPs:

    If you have multiple SIPs, consider spreading them out throughout the month to potentially benefit from market fluctuations.

  7. Consult your financial advisor:

    If you have any doubts or need personalized advice regarding your SIP day or overall investment strategy, consider consulting a registered financial advisor. They can provide guidance based on your specific financial goals and risk tolerance.

How is My Next SIP Date Calculated?

Your next SIP date is determined by the available dates set by the fund houses. For example, if you began your SIP on May 10th and the available dates are the 1st, 7th, 15th, 21st, and 28th of each month, your next SIP could fall on June 15th, June 21st, June 28th, July 1st, or July 7th. Ensure a minimum 30-day gap between installments for consistency and flexibility in your investment strategy.

How To Automate SIP Investments for Mutual Funds?

To automate SIP investments:

  • Log in to your bank's net banking.

  • Add BSE as the Biller under Mutual Funds.

  • Provide necessary details like the scheme name and folio number.

  • Set up automated payments for your SIP.

  • Authorize the transactions.

  • Review and confirm the setup.

  • Complete the process.

By following these steps, you can automate your future SIP instalments conveniently.

How to Calculate Returns On Your SIP Investments?

To calculate returns on your Systematic Investment Plan investments, you can use an SIP calculator. This tool helps investors estimate the potential returns based on their investment amount, SIP duration, and expected rate of return. By inputting these variables into the SIP calculator, individuals can make informed decisions about their investment strategies and goals. It simplifies the process of understanding how their investments may grow over time, helping in financial planning and decision-making.

Conclusion

Selecting the appropriate SIP Day is an important step in effectively managing your investments. By carefully choosing the day that aligns with your financial goals, cash flow, and market conditions, you can optimize your SIP strategy for long-term wealth creation.

+For Mutual Fund midcap category Returns https://www.morningstar.in/tools/mutual-fund-category-performance.aspx & for Insurance midcap fund category Returns- https://www.morningstar.in/tools/insurance-fund-category-performance.aspx
*Past 10 Year annualised returns as on 01-12-2023
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

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