Kotak Mahindra Bank SIP Plan

Kotak Mahindra Bank SIP Plans allow you to invest a fixed amount in mutual funds^^ or other fund schemes regularly. It's like a deposit for your future. These plans are great for beginners because you can start and benefit from rupee-cost averaging, which helps reduce investment risk over time.

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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

Best SIP Plans in 2024

  Returns
Fund Name 3 Years 5 Years 10 Years
Top 200 Fund
TATA AIA
25.81% 27.49% 21.65%
Virtue II
PNB METLIFE
24.47% 23.35% 19.37%
Pure Equity
BIRLA SUN LIFE
21.79% 19.59% 18.46%
Growth Opportunities Plus Fund
BHARTI AXA
17.41% 18.75% 18.22%
Pure Stock Fund
BAJAJ ALLIANZ
18.6% 17.6% 17.82%
Blue Chip Fund
HDFC STANDARD
12.63% 15.02% 15.28%
Growth Super Fund
MAX LIFE
12.81% 15.16% 14.69%
Equity Fund
SBI
13.65% 15.04% 14.38%
Multi Cap Growth Fund
ICICI PRUDENTIAL
14.97% 14.08% 14.17%
Equity II Fund
CANARA HSBC ORIENTAL BANK
12.23% 12.78% 12.45%

What are SIPs?

Systematic Investment Plans, or SIPs, offer a convenient and disciplined approach to investing in funds. Instead of investing a lump sum, SIPs allow you to invest a fixed amount of money at regular intervals, usually monthly or quarterly. This makes investing more accessible, even for those with a limited budget. It enables the investors to select the best category of investment and choose the best SIP plans and schemes to make the investments of their fund in a given time. The regular interval in an SIP could be monthly, quarterly, or annually. However, the prescribed interval varies weekly, monthly, and quarterly in the Kotak SIP investment plan.

Different Types of Kotak SIP Plans

Type of SIP Description Suitable for
Regular SIP Invest a fixed amount at regular intervals (monthly, quarterly, etc.) Beginners, disciplined investors
Top-up SIP Gradually increase the SIP amount at predetermined intervals Investors with increasing income, long-term goals
Flexible SIP Invest different amounts, offering flexibility to adjust based on cash flow Investors with irregular income
Trigger SIP Automatically adjust SIP amount based on pre-defined triggers (e.g., market fluctuations) Advanced investors comfortable with automation
Perpetual SIP Invest continuously until stopped manually Long-term investors with a set-and-forget approach

How Does the Kotak SIP Plan Work?

Kotak SIP Plan functions like any other Systematic Investment Plan (SIP). Here's how it works:

  • Choose a Fund Scheme: Kotak offers a variety of mutual funds and other fund schemes across different asset classes (equity, debt, hybrid). Pick the one that aligns with your investment goals and risk appetite.

  • Set Up Your SIP: Decide how much you want to invest regularly (minimum can be Rs. 500 with Kotak) and how often (monthly, quarterly, etc.).

  • Automatic Deduction: Kotak will automatically deduct the SIP amount from your linked bank account at the chosen frequency.

  • Purchase Fund Units: The deducted amount is used to purchase units of your chosen fund scheme. The number of units you receive depends on the prevailing Net Asset Value (NAV) of the scheme.

  • Rupee-Cost Averaging: By investing regularly, you purchase units at different NAVs, which helps average out the overall cost per unit. This is beneficial over time, especially in volatile markets.

**The Kotak Bank SIP interest rate for the Kotak SIP plans generally varies from 9 to 18% annually. The interest rate is subject to increase or decrease, depending on the market. 

How to Choose the Correct Kotak SIP Plans?

Here's how to choose the right Kotak SIP Plan:

  • Define your goals: Determine your short-term and long-term financial objectives before selecting a Kotak SIP plan.

  • Risk Tolerance: Can you handle market fluctuations or prefer stability.

  • Investment horizon: Consider the duration of your investment horizon. Kotak SIP plans offer flexibility in investment tenures. 

  • Consider Diversification: Diversify your investment portfolio by selecting Kotak SIP plans across different asset classes and sectors.

  • Review Costs and Charges: Understand the fees, expenses, and charges associated with Kotak SIP plans. Evaluate factors like fund management fees, exit loads, and administrative expenses. 

  • Track record & Fund manager: Research Kotak's SIP options and fund manager performance.

Conclusion

The Kotak Mahindra Bank SIP plan is one of the best options to invest in funds and enter the market of mutual funds and other funds schemes. The Kotak Mahindra Bank SIP plan offers several choices to investors to select an appropriate scheme for the investment of their funds in a desired category. In addition, the investors may avail of several types of Kotak SIP plans or may select one to fulfill their financial requirements.

FAQs

  • What is a Kotak Mahindra Bank SIP Plan?

    Regular investment in Kotak Mutual Funds and other fund schemes through fixed installments.
  • What are the benefits of a SIP plan?

    Start small (Rs. 500+), benefits discipline, benefits from rupee-cost averaging.
  • Who should invest in a SIP plan?

    Anyone looking to build wealth for long-term goals.
  • What are the different types of SIP plans offered?

    Equity, Debt, Balanced - depends on your risk appetite and goals.
  • How do I choose the right SIP plan?

    Consider your goals, investment horizon, and risk tolerance.

+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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