How to Start SIP Investments/Mutual Funds
A lot of investors are investing through SIP today. SIP is an abbreviation for Systematic Investment Planning.
It is designed by mutual funds to help their regular investor build portfolios with small amounts of regular investments made at regular intervals either monthly, quarterly or half-yearly.
When you start investing with SIP you will reap rich rewards in the long term.
What is a SIP?
A SIP in an acronym for Systematic Investment Plan. This plan consists in making monthly investments in a specific mutual fund at the same time and in the same amount each month until a predetermined number of months or years has passed.
The main advantage of this type of investment is that all the investor needs to do every month is transferred the management fees (normally less than 0.5%).
This way, you can turn your savings into your future without having to make too many decisions about when to invest and what to invest in each month.
Is SIP safe to invest in shares and bonds via this simple instrument?
A wide network of intermediaries recommends the SIP route as one of the most lucrative and convenient methods for low-cost and concentrated equity and bond investments.
It is, without any doubt, a protected and hassle-free investment well suited to investors with limited liquidity.
How to set up a SIP for fund investments
A systematic investment plan is the simplest way to invest. You do not need any brokerage or securities trading account to set up a SIP.
All you need is a bank account and paying capacity. And for this, you will incur a half or full-service charge per annum as applicable from the fund house as an establishment charge.
Given below are four features that make SIPs more suitable for investment:
2. Liquidity factor
3. Long term compounding effect
4. Auto adjustment by fund manager
Anticipate returns from your investment
It’s not just the start-up costs, land acquisition or initial construction which should be considered. You need to plan for setting up management teams who can take your company further. Your current cash flow should provide enough capital to plan for success.
I invite you to check the blog if you are interested in more about these investments. I hope that it has given you some fresh information and ideas for your personal investing needs.