What are the benefits of SIP?
The Systematic Investment Plan or SIP is a tool that is used by mutual
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SIP Insurance Plan Benefits
Start SIP with as low as ₹1000
No hidden charges
Save upto ₹46,800 in Taxunder section 80C^
Zero LTCG Tax¶
Disciplined & worry-free investing
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
3 Years |
5 Years |
10 Years |
| PNB Metlife |
17.91% |
25.37% |
|
| Birla Sun Life |
16.62% |
21.16% |
|
| Tata AIA |
17.43% |
21.32% |
|
| Bharti AXA |
14.05% |
18.28% |
|
| Bajaj Allianz |
16.57% |
20.06% |
|
| HDFC Standard |
13.73% |
17.26% |
|
| Max Life |
14.33% |
16.96% |
|
| SBI |
13.88% |
16.05% |
|
| ICICI Prudential |
12.15% |
15.33% |
|
| Canara HSBC Oriental Bank |
11.96% |
13.44% |
|
| |
Returns |
| Fund Name |
3 Years |
5 Years |
10 Years |
| Active Fund QUANT |
24.92% |
31.48% |
|
| Flexi Cap Fund PARAG PARIKH |
20.69% |
26.41% |
|
| Large and Mid-Cap Fund EDELWEISS |
22.34% |
24.29% |
|
| Equity Opportunities Fund KOTAK |
24.64% |
25.01% |
|
| Large and Midcap Fund MIRAE ASSET |
19.74% |
24.32% |
|
| Flexi Cap Fund PGIM INDIA |
14.75% |
23.39% |
|
| Flexi Cap Fund DSP |
18.41% |
22.33% |
|
| Emerging Equities Fund CANARA ROBECO |
20.05% |
21.80% |
|
| Focused fund SUNDARAM |
18.27% |
18.22% |
|
We make it possible for our customers to carry out mutual funds investments using SIP’s in a smooth and hassle free manner. To know more about SIP benefits, the following points need to be kept in mind.
Well Known Features of SIP (Systematic Investment Plan)
- The Systematic Investment Plan is a mode of investment by which fixed sums of money are debited into bank accounts by investors periodically and then invested in specific mutual funds.
- The person using SIP will be allocated a certain number of unites in accordance with the ongoing Net Asset Value or NAV.
- Each time a sum of money is invested, there will be more units added to the account of the investor.
Benefits of SIP
No Difficulties associated with the Use of SIP
To start using SIP is not going to be difficult for any investor. All they have to do is sign up for any one of the mutual funds schemes that we make available to them and the SIP shall be put in place for them automatically.
Signing up for mutual funds schemes can be done online in a matter of just a few minutes. The average time for applications for mutual funds to get processed is about two to three weeks after which investors can start accessing their mutual funds accounts online on a daily or weekly basis depending on their convenience.
SIP Ideal for Investors not eager to make Lump Sum Payments
- The SIP is ideal for people who are not looking to make lump sum payments for their mutual fund investments.
- The minimum amount that is usually required to be paid initially for any mutual funds scheme is around 5000 INR.
- Those who opt for a systematic investment plan can bring this down to 500 INR per month or per week.
- As a result the systematic investment plan is one that suits mutual funds investors of every budget.
- This is an investment plan that can even be opted for by mutual funds investors who do not have a regular source of income.
A Flexible Mode of Investment for all Mutual Funds Investors
- A good reason to be using SIP is the fact that this is a mode of investment that is highly flexible and therefore beneficial for all kinds of investors out there.
- Any person who opts for the systematic investment plan for investing in the mutual funds schemes that we offer can stop the plan whenever they are unable to continue with it.
- There are absolutely no penalties at all that investors are likely to be faced with if they are unwilling to go on with their mutual funds investment and wish to stop the SIP as soon as possible.
No Charges for Starting an SIP
There are no additional charges that investors are likely to incur at all in order to start a systematic investment plan for their mutual funds scheme. The cost of using such an investment plan is nil while the financial benefits associated upon its use are sky high.
Mutual Funds Investments become highly organized with SIP
- Investments can be made in a very flexible and organized manner once a systematic investment plan has been put in place.
- We always encourage our mutual funds customers to opt for SIP as this is a means by which investments can be paid for some of the most lucrative mutual funds schemes on a quarterly, monthly or even weekly basis.
- Investors never have to worry about feeling financially drained when they choose systematic investment plans to carry out their mutual funds investments with us.
Possible to make Small Payments with SIP
Customers usually prefer to pay 500 INR every month. Investments have to be made in denominations of 500 INR and 1000 INR only and once the initial investment of 500 INR is made, investors can go ahead and pay in higher denominations of 1000 INR from the next month or quarter onwards.
SIP can be started in a Quick and Efficient Manner
- We make it possible for our customers to start an SIP online in a smooth and hassle free manner by taking care of all formalities associated with the process.
- When the mutual funds investment application has been approved for a customer and the customer has been given log in details to access mutual funds account online, we take immediate steps to get the SIP started.
- There are some specific details that we require from our customers in order to get them to start using SIP such as their sources of income, PAN number, IT details etc, receiving which the SIP can be set up by us efficiently and quickly.
Prevents Investors from Speculating in Highly Volatile Financial Markets
- SIP is an investment strategy that can free investors from carrying out speculations in the most volatile of markets.
- The investor gets more units at a time when these are available for low prices and procures fewer units while prices are high.
- The average cost for every unit in the long term is likely to be lower while the returns from the investment are terrific.
Inculcates Discipline in Mutual Funds Investments
A well known reason why SIP is so widely used is the fact that this brings about some discipline in mutual funds investments. Since the SIP’s are highly flexible, investments may be halted at any point of time while investors may also opt to decrease or increase the amount being invested.
SIP’s are Perfect for First Time Investors and Retail Investors in Mutual Funds
SIP is ideal for retail investors as such investors seldom possess the resources for pursuing active investment. SIP is also suitable for investors having little knowledge of financial markets. To get the better idea, it is suggested to study the best SIP plans in the market.
How are the SIP transactions carried out?
Investing through SIP is done using ECS or the Electronic Clearing System. This is a hassle free way by which money gets debited from the bank account of the investor towards a mutual fund investment.
|
Date
|
Investment Amount
|
NAV
|
Units Purchased
|
|
Jan 11
|
1000
|
298.50
|
3.35
|
|
Feb 11
|
1000
|
269.28
|
3.71
|
|
March 11
|
1000
|
268.96
|
3.72
|
|
April 11
|
1000
|
282.66
|
3.54
|
|
May 11
|
1000
|
286.33
|
3.49
|
|
June 11
|
1000
|
280.64
|
3.56
|
|
July 11
|
1000
|
281.05
|
3.56
|
|
August 11
|
1000
|
277.63
|
3.60
|
|
September 11
|
1000
|
248.36
|
4.03
|
|
October 11
|
1000
|
245.41
|
4.07
|
|
November 11
|
1000
|
253.73
|
3.94
|
|
December 11
|
1000
|
235.85
|
4.24
|
|
Total
|
12000
|
|
44.82
|
|
Average Price per Unit
|
267.75
|
|
|
One Time Investment
|
Date
|
Investment Amount
|
NAV
|
Units Purchased
|
|
Jan 11
|
12000
|
298.50
|
40.20
|
|
Total
|
12000
|
|
|
|
Average Price per unit
|
298.50
|
|
|
Things to Remember when Using SIP
While SIP is indeed a very popular and easy way by which mutual funds investments can be carried out, there are a number of points that need to be borne in mind in order to use such an investment plan in the best possible way.
Investments have to be made on Time
The monthly or quarterly investments have to be made in a timely fashion and investors should always make sure never to default on these. Defaulting on such payments will reduce the consistency that is otherwise associated with the systematic investment plan and shall make things haphazard for the mutual funds investor.
SIPs ought to be used in Discreet Fashion
The SIP needs to be used as discreetly as possible as there are several ways by which financial fraud can occur online, resulting in complete disaster for mutual funds investors. The best time to use the SIP for making a scheduled investment in a mutual funds scheme is in the late hours of the night or in the early hours of the morning.
Online Investments must be made using High Speed Internet
- Investors need to make sure that they are connected to high speed internet when they carry out their mutual funds investments online using the systematic investment plan.
- The process of making even the smallest of payments through the use if SIP is quite a long drawn out one and if the internet speed is slow, the entire process is going to turn out to be a very tedious affair for the investor.
- We often recommend that we carry out such investments on behalf of our mutual funds investors as we are well acquainted with the procedure and can complete it without glitches.
- We make it a point to make SIP investments with a high degree of efficiency and notify our customers over email once this is completed.
Thus, the Systematic Investment Plan is indeed a very flexible, convenient and efficient means of making mutual funds investments online. Investors get to save a lot of time as well as money when they choose SIP for investing in any popular mutual funds scheme. SIP calculator online tool can be used to analyse the SIP returns.
