How to invest in SIP online and how can I start SIP online are common questions that investors have today. If you are wondering how to start SIP online, here is everything you need to know. The answer to how to invest in SIP online was never this simple!
Investing in Systematic Investment Plan (SIP) online has become increasingly popular in recent years, thanks to its convenience and accessibility. SIP is a type of mutual fund investment that allows investors to invest a fixed amount of money at regular intervals, typically monthly. This approach to investing is popular because it allows investors to park small amounts of money over a period of time, thus enabling you to reduce the risks associated with investing in the stock market.
So, how to start SIP online? Well, online platforms have made investing in SIPs more accessible and convenient than ever before. They provide investors with easy access to information about different funds, historical data, and portfolio management tools, ensuring that you can make well-informed and planned decisions about your investments.
To answer your question of how can I start SIP online, please go through the following steps. Once you start your journey, achieving your financial goals will be absolutely seamless.
Systematic Investment Plans (SIPs) are an investment tool that let you invest a fixed amount periodically in a mutual fund of your choice. SIPs offer many benefits:
- Inculcate a healthy saving habit early on in life
- Use the power of compounding to your advantage when you invest regularly
- Accomplish long term financial goals by building a corpus of wealth over time
- Using Rupee-Cost Averaging as an automatic investing mechanism, resulting in lower overall investment cost
- Having the advantage of diversification so as to spread your investment and minimize risk
How to Invest in SIP Online
In the age of online shopping and banking, could Systematic Investment Plans be far behind? Here is a step-by-step guide on how to start a Here is a step-by-step guide on how to start a SIP investment online:
- Identify Financial Goals: Understand your long-term needs, identify your financial goals (buying a house, child's higher education, your retirement, etc.), and define the timelines. Doing this will make your goals more definitive. Your goals depend on your income, loan obligations, monthly expenditure, number of dependants, etc.
- Be KYC Compliant: You need to be KYC (Know Your Customer) compliant before you can start online SIP investing. This is a simple one-time exercise. You can contact your financial advisor, or go to a registrar's point of sale (CAMS, Karvy etc.), fill up the KYC form, and submit it along with copies of your PAN Card and ID proof. You can also complete KYC online through the website of the mutual fund of your choice, or by going to the CAMS KRA online. If completing KYC through the mutual fund's website, you may be asked to complete your in-person verification through a video call.
- Choose the Right Plan: When creating an online SIP, it is important to pick the most suitable mutual fund that meets your investment goals. If you are not familiar with mutual fund investing, you should seek professional help from a certified financial planner or a mutual fund distributor who can help you pick the right schemes and guide you on how to buy SIP online.
- Decide on the SIP Details: The specifics of your SIP will depend on your personal comfort and priorities. Decide upon the frequency (weekly, monthly, quarterly, etc.), date and the amount of your periodic investment. Your investment amount can be as low as Rs. 500, which you can increase as per your comfort level.
- Start your SIP Online: Visit the website of the mutual fund that you want to invest with and register as a new user. You can then start your SIP online.
How much should I invest each month in SIP?
How much you invest depends on your capacity and your financial goals. For example, if your goal is to retire in 30 years with a kitty of Rs. 1 crore, assuming your SIP returns 15% per annum, you need to save about Rs 1,445 per month. Of course, as you grow professionally, your capacity to invest will increase as well, which means you could potentially build more wealth, by periodically increasing your monthly investment.
Think of SIPs as an easy way to accumulate wealth with minimum effort by investing in instalments. With online SIPs, this process is made even easier as you can do it from the comfort of your home or office any time of the day.
An investor education initiative by Edelweiss Mutual Fund
All Mutual Fund Investors have to go through a one-time KYC process. Investors should deal only with Registered Mutual Fund (RMF). For more info on KYC, RMF and procedure to lodge/redress any complaints, visit - https://www.edelweissmf.com/kyc-norms
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS. READ ALL SCHEME RELATED DOCUMENTS CAREFULLY
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MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
