Why should you choose to invest via a systematic investment plan?
If you are short on cash to make a lump-sum investment or if you want to reduce your risks, then you can choose an SIP. Also, an SIP would bring in discipline, which helps you make logical decisions instead of succumbing to greedy impulses.
When is the best time to invest in SIP?
There is nothing like good timing when it comes to investments. It’s more about what you need from that investment. In an SIP, you can automate your transfers, and be hassle-free about the date in a particular month. With investing via an SIP, you don’t have to time the markets.
Should you choose SIP for long-term wealth creation?
A customer can choose any investment period. But, it has been proven that a long-term investment (5 years and longer) has been rewarded with greater returns as compared to short term investment.
How much should you invest in a mutual fund
In an SIP investment, you can start investing as low as Rs 100 a month. You can increase your investment once you get accustomed to mutual funds.
Can I miss an SIP payment?
you can miss your payment and still your account wouldn’t be deactivated.
There are options to pause your payments in various mutual funds.
Do all investments through SIP have tax benefits?
Only investments in ELSS mutual funds through SIP have tax exemption of up to Rs 1.5 lakh a year under Section 80C.
Are SIPs safe?
An SIP is just a mode of investment. The safety/risky component is related to the fund you choose.
How do I start my SIP investment?
You’ll first have to choose the fund which is in line with your requirements and risk profile. After that, you have to sign up and create an account. Fill all the requested details and initiate an SIP.
How to shorten SIP duration?
This can be done online by logging into your investment account. Alternatively, you can visit the branch of a fund house and submit a duly filled application.
How can I extend my SIP duration?
At the end of your SIP term, you will get an option for renewal of your investment. You can fill out that form and then choose the desired duration of the investment.