Why Choose Systematic Investment Plan?
If you are short on cash to make a lump sum investment or if you want to reduce your risks you can choose an SIP. Also, an SIP would bring in discipline, which helps you to make logical decisions instead of succumbing to greedy impulses.
When is the best time to invest in SIP?
There is nothing like a 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.
Should I Choose SIP for Long term wealth?
Any investment period can be chosen by a customer. But, it has been proven that a long term investment has been rewarded with greater returns as compared to short term investment.
How much should I invest in a mutual fund through SIP?
In an SIP investment you can start with as low as Rs.500 as your investment and you can go up to whatever limit you want to.
Can I miss an SIP payment?
Yes, you can miss your payment and still your account wouldn’t be deactivated. There are options to pause your payments in various mutual funds.
Are all investments through SIP have tax benefits?
Only investments in ELSS through SIP have tax exemption up to Rs. 1.5 lakh PA under Section 80C.
Is SIP safe?
An SIP is just a mode of investment. The safe/risky component is related to the investment which you choose.
How do I start my SIP investment?
Just choose the investment in which you want to invest and you are ready to start. One primary thing is that you have to fill your KYC documents before investing.
How to shorten SIP duration?
You can send a written application or ask for an request online to the fund management company before the next SIP is scheduled. However, you should have completed the minimum investment period, which is generally 6 months.
How can I extend my SIP duration?
At the end of the 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 investment.