When you invest in mutual funds, there are different ways you can make your investment. One of the best ways to do so is by using Systematic Investment Plan, commonly known as SIP.

So what is SIP?

SIP is an investment vehicle in which a fixed amount of money is periodically debited from your bank account and invested into a specific mutual fund. Depending on that day’s Net Asset Value, you will be allocated a certain number of units of the mutual fund scheme.

NBFCs like Bajaj Finserv offer Mutual Funds with benefits like small investment amounts and diversification facilities. Read More: Right Amount To Invest In SIP

What are the Benefits of Choosing SIP?

– SIPs inculcates the habit of investing and saving in a disciplined manner, thereby helping you secure your future.

– You reap the benefits of compound interest, as even small investments can give you big returns over time. Read More: Reasons To Invest In SIP

– In today’s volatile economic markets, your SIP has the ability to buy more units when the price is low and vice-versa. In the long run, the average cost per unit will be lower than when you purchase them in one go. This not only benefits you monetarily but also protects you from taking hasty decisions based on speculations when the market is unstable.

– SIP, though designed for long term investment, can be discontinued at any given time at your command. You also have the freedom to increase or decrease the amount of investment, depending on your current financial state.

– No extra charges or taxes are levied when you withdraw or deposit money in an SIP investment.
All these benefits are ideal not just for investors with lots of capital, but also for those with limited investment resources.

Types of SIP Investments

Here is a look at the various types of SIP investment options that are open to you:

– Daily SIP

This mean that a fixed amount is debited from your account every single day. If you are a small trader working in a micro segment, this is a good scheme for you.

– Weekly SIP

The amount to be invested is deposited to the mutual fund once a week.

– Monthly SIP

Once a month, on a predetermined date (usually from 1st to 10th), the investment will be made. This is the most popular plan and is perfect for those who earn a fixed monthly salary.

– Flexi SIP

Like the name suggests, this plan allows you to invest different amounts at different time periods.

How to Apply?

Now that you have understood how a SIP works and what its benefits are, here’s how to invest in sip mutual funds online:

– The first step is to get in touch with a reliable asset management company that will help you manage and mobilize your funds. Financiers like Bajaj Finserv have tie-ups with different Asset Management companies and can help you decide on a SIP that best suits your finances.

– Carefully read the eligibility criteria to know if you are eligible for mutual fund investments and SIPs. If you are, then submit all the documents that the asset management company requests.

– Next, narrow down the available options to the top SIP mutual funds.

– Now, invest online in mutual funds and choose SIP as the payment mode.

– You have the option to either allow for an auto-debit from your bank account or submit post-dated cheques in favour of the fund.

Now that you have learnt some important tips to invest in an SIP, start investing. Reach out to Bajaj Finserv, choose a Mutual Fund that fits the bill and you are good to go!

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