Best SIP Investment Plans and how SIP works

Investment Plans

SIP stands for the systematic investment plan. It is an investment route wherein an investor can invest a fixed amount at a Mutual fund investment at A regular interval of time, whether it can take a month or every quarter. In SIP, it is straightforward to invest because of a smaller amount that it could be as little as ₹500 monthly. And you can advise your bank to debit the amount from your account every month directly.

Nowadays, it is gaining popularity among the mutual fund investors, as it helps in investing a smaller amount and in a disciplined way.  The Mutual fund offers SIPand it is the best way to enter the world of the investment.

Best SIP Plans to invest

  1. SBI Small Cap Fund (G) Direct
  2. Mirae Asset Emerging Bluechip
  3. Canara Rebeca Emerging Equities
  4. Reliance Small Cap Fund (G) Direct
  5. ICICI Pru Banking & Fin Serv Fund 

Features of SIP Plans

  • SIP is the easiest way to invest in something and it is the simplest method to enter the worlds of investment. And it’s better to start investing in SIP in the early age of 20-30 years instead of 40 years.
  • SIP is regulated and done by an individual with a minimum amount of Rs500 in a disciplined way. And anyone can make invest in SIP plans without even have a second thought.
  • Like PPF, Bonds, fixed deposit, there is no lock-in period in SIP. An investor is free to break his/her plan whenever he wants.
  • There is no limit on the numbers SIP plans. An investor can take as many SIP as he wants. Multiple SIP plans he can invest in.
  • SIP is not done in financial institutions or a bank. The investment in SIP can only be made in the equity market. 

Benefits of SIP plans

  • Make an investor disciplined and regular

A SIP is called as a disciplined way of investment. It allows anyone to become a regular investor.  An investor investsin a regular interval of the time period and a fixed amount. And thus, it makes them disciplined investor and helps them in cutting down of an unnecessary expense.

  • Lighter on the wallet

It allows an investor to invest a small amount of investment and it doesn’t create any burden in their wallet. It removes the risk of a large amount of investment.

  • Hassle-free

Investment in SIP is very easy as compared to any other money market. It also allows an investor to increase or decrease the money whenever they want.

When to invest in SIP

It’s better to invest according to date.  Set a time when you want to debit the amount from your account and then start.

How much you should invest

First, determine your goal and according to that, calculate the amount with the calculator of Mutual fund that how much money you want to save monthly to achieve that goal.

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