Systematic Investment Plan (SIP)

Overview

Dreams can only be achieved if you work towards them. Even building wealth is no different. A Systematic Investment Plan (SIP) helps you do just that. With SIP, you can invest a fixed amount in mutual funds step-by-step monthly or quarterly over a period of time, thereby averaging out your cost of investing and benefiting from the power of compounding. The power of compounding works best as you stay invested helping your money earn money over the years. After all, it is the time in the market and not timing the market that helps you create wealth for your dreams in life. So, dream more and achieve much more. Start investing through a SIP today and work towards achieving your dreams.

How SIP works?

SIP is a method of investing a fixed sum, regularly, in a mutual fund scheme. SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves. The biggest advantage of SIP is that one need not time the market. In timing the market, one can miss the larger rally and may stay out while markets were doing well or may enter at a wrong time when either valuation have peaked or markets are on the verge of declining. Rather than timing the market, investing every month will ensure that one is invested at the high and the low, and make the best out of an opportunity that could be tough to predict in advance.

An investor can invest a pre-determined fixed amount in a scheme every month or quarterly, depending on his convenience through post-dated cheques or through ECS (auto-debit) facility. Investors need to fill up an Application form and SIP mandate form on which they need to indicate their choice for the SIP date (on which the amount will be invested). Subsequent SIPs will be auto-debited through a standing instruction given or post-dated cheques. The forms and cheques can be submitted to the office of the Mutual Fund / Investor ServiceCentre or nearest service centre of the Registrar & Transfer Agent. The amount is invested at the closing Net Asset Value (NAV) of the date of realisation of the cheque.

Secret to achieving MuchMore with SIP

# List down your dreams and goals and work out a plan to achieve them through SIP
# Ascertain the monthly/quarterly SIP required to achieve your goals
# Identify the scheme(s) in which you would like to invest and complete the formalities for SIP investment including forms and cheques
# Invest for the long term as the twin benefits of power of compounding and rupee-cost averaging work through different market cycles
# Diversify your investments for your dreams through multiple SIPs in different schemes to optimise returns as per your needs