SIP

Systematic Investment Plan

The Systematic Investment Plan (SIP) is an investment option provided by Mutual Funds that enables investors to invest a specified amount in a Mutual Fund scheme on a regular basis, such as once per month or once every three months, as opposed to doing so all at once.

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Benefits of SIP

Power of Compounding

An effective method to combat market volatility and take advantage of compounding’s immense potential is a systematic investment plan (SIP). Instead of making a large, one-time payment, a SIP enables you to invest in any mutual fund over time by making smaller, recurring investments. This modest amount of money pouring out on a regular basis has little of an impact on your other financial obligations. Moreover, you will always require a SIP return calculator.

Starts With Small Investment

You can invest in mutual funds through a SIP with a least possible amount per month. This can be an affordable way to invest each month without hurting your wallet. You can increase your monthly investment amount with a rise in your income via SIP step-up feature. Mutual fund houses and Asset Managers allow investors to top up their SIPs on a regular basis. So, even if you start with BDT. 1000 or BDT. 3000 every month, you can invest more over the years. This strategy can help you reach your investment goals at a faster rate.

Can Invest Online

Online facilities for the investment of SIP are the greatest possible benefit for the potential investors. Less paper works and hassle-free rapid investment procedure making this investment context more acceptable.

Disciplined Investing

In this, investment can be made in a disciplined manner. This facility enables an investor to invest a fixed amount of money at intervals that are pre-defined in the selected mutual fund scheme. These SIP intervals depend on the investor and can be on a weekly/monthly/quarterly/semi-annually or annual basis.

How to start investing through SIP

Complete your KYC

Investors must complete the KYC documentation process before they may begin investing with any fund institution. You must provide documentation of your identity, address, and photo. The e-KYC option is now also recognized. Without going to the AMC, the formalities can be finished online.

Set your investment goals

Understanding what you hope to achieve with SIP investments is the first step. Write down your financial objectives. Every mutual fund is created with a certain aim, so this is important. Decide on your objectives, and then look for funding to support them.

Choose the SIP

Once you select a particular fund, choose the SIP parameters. Fill in the details for questions like:

  • Investment tenure
  • Frequency of investment (monthly, quarterly, semi-annually etc.)
  • Investment amount
  • Enter the relevant information based on your goals and financial situation

How to start investing through SIP

Complete your KYC

Investors must complete the KYC documentation process before they may begin investing with any fund institution. You must provide documentation of your identity, address, and photo. The e-KYC option is now also recognized. Without going to the AMC, the formalities can be finished online.

Set your investment goals

Understanding what you hope to achieve with SIP investments is the first step. Write down your financial objectives. Every mutual fund is created with a certain aim, so this is important. Decide on your objectives, and then look for funding to support them.

Choose the SIP

Once you select a particular fund, choose the SIP parameters. Fill in the details for questions like:

  • Investment tenure
  • Frequency of investment (monthly, quarterly, semi-annually etc.)
  • Investment amount
  • Enter the relevant information based on your goals and financial situation

Interested in starting a SIP? Click here to get started!

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Frequently Asked Questions about SIP

A SIP is a simple and cost-effective way to invest your money in mutual funds. It can be a good option if you want to minimize your risks and invest a fixed amount in mutual funds regularly.

There is no ‘good’ or ‘best’ time to invest through a SIP. The best thing about SIP investments is that you don’t have to time the market or wait for the perfect opportunity to invest. Once you select a particular fund to invest, you can choose any date of the month and invest regularly. Automate your investments to make the entire process simpler.

Investing through SIPs for the long-term can be an effortless way towards wealth creation. This is because compounding comes into play. The returns you could earn on your investments grow large over time. And the longer you invest the higher profits you could garner.

Yes. You can miss your SIP payments. And even if you do, your account will not get deactivated. Fund houses also give you the option to pause your payments for a specific period. This is a useful feature you can use in case you are unable to make your monthly SIP payments.

You can start SIP investments by selecting a fund you want to invest. But before that, complete the necessary formalities and furnish your KYC details to the Asset Management Company (AMC).

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