Systematic investment plans (SIPs) are simple to implement once you know how much to invest and how to start investing. It’s simple enough—just complete the KYC procedures, open an account, and start to invest.
Anyone may want to invest a large quantity on occasion, however, you may not have the entire amount available. A systematic investment plan (SIP) might be useful in this situation.
If you are a long-term player, Sip is the best option to grow your money up to 1 cr.
Be ready to play the game of investing in SIP without a broker…
What is SIP?
A systematic investment plan (SIP) is a strategy in which investors make monthly, equal contributions to a mutual fund, trading account, or retirement account. SIPs enable investors to save on a regular basis with a lesser amount of money while reaping the long-term benefits of dollar-cost averaging (DCA).
Utilizing a DCA approach, an investor purchases an investment using periodic equal transfers of cash to gradually develop wealth or a portfolio.
Also Read: How to invest in Mutual Fund
How much money you can get through SIP?
You can get up to 1 cr through SIP and it is possible at just Rs. 2,000 monthly investment.
Let’s take an example:
- Monthly Invest: Rs. 2,000/-
- Annual Returns: 18%
- Investment Period: 25 yr.
Let’s see the result:
This is the Power of Compounding. Your 6 lakhs invested amount giving 1.1 cr. at the end of 25 years.
How should you invest in SIP
A one-time investment
You make a one-time payment of a significant quantity of money with this manner of investment.
In contrast, a SIP is a defined amount of money that is put in a mutual fund plan at regular periods. In brief, a one-time investment option may be chosen if you have money to invest right now, and a SIP can be chosen if you foresee a regular input of money in the future. SIPs are recommended for first-time investors.
Best SIP Plans to Invest
When compared to direct stock investing, a SIP equity fund investment is considered low risk and advantageous in terms of long-term returns. Investments in equity SIP funds are often made in shares of Indian firms.
|Equity Mutual fund||5 Year Returns||3 Year Returns||Minimum Investment|
|BOI AXA Small Cap Fund Direct Plan-Growth||–||41.40%||Rs. 5000|
|Aditya Birla Sun Life Digital India Fund – Growth – Direct Plan||32.54%||39.64%||Rs. 1000|
|ICICI Prudential Technology Fund||32.50%||38.69%||Rs. 5000|
|ICICI Prudential Technology Fund – Direct Plan-Growth||33.65%||39.91%||Rs. 5000|
|PGIM India Midcap Opportunities Fund – Direct Plan-Growth||23.37%||38.40%||Rs. 5000|
|Quant Infrastructure Fund – Direct Plan-Growth||0.2562||0.3901||Rs. 5000|
|Quant Small Cap Fund – Direct Plan-Growth||23.23%||40.08%||Rs. 5000|
|TATA Digital India Fund – Direct Plan-Growth||34.58%||38.46%||Rs. 5000|
How to Invest in SIP without Broker
1. Set Investment Plans
Every mutual fund is designed to attain a certain goal. You must assess your needs and select the fund that best meets your objectives and risk tolerance. If you are having difficulty selecting the proper mutual fund, please let us know your needs and we can recommend funds for you.
2. Choose between SIP and lump sum
There are two methods to invest in mutual funds: as a flat payment or over time through a systematic investment plan (SIP). You must examine your profile and decide whether to invest in a lump sum or a SIP.
3. Fill out the KYC information
To invest in mutual funds using SIP, one must be KYC-compliant. You may quickly finish this step by filling out a KYC form with your name, date of birth, address, and mobile number and submitting it along with a soft copy of your pan card and address proof.
If you wish, you can complete KYC online using the mutual fund house’s online trading platform or mobile trading app, or through CAMS KRA.
4. Choose the SIP Date
Because your money is auto-debited from your bank account as part of the Systematic Investment Plan (SIP), you must select a specific date when it is convenient for you to pay. You can, however, select numerous SIP installment dates each month.
5. Investing till the End
The most effective strategy to build wealth through long-term investing is through systematic investment plans (SIPs). Mutual fund prices don’t need to be checked every day, and trying to time the market every day isn’t a good idea either. So, worry-free till the conclusion of your investment time.