Asif Iqbal, director of research at Ascourt Security, says that investment in SIP has increased due to the rising stock market. In the past month, along with Top-100 DSPs, Axis Blue Chip, including BNP Paribas, have seen returns of 15 percent. We tell you that the Systematic Investment Plan allows you to invest a fixed amount every month in the mutual fund scheme of your choice.
Start mutual fund SIP like this:If you want, you can also invest every week via SIP. Discipline is very important in investing. Maintains discipline in SIP investment. Apart from this, he continues to invest regularly. Whether there’s a market boom or bust, your money keeps going into mutual funds. For example, if you decide to invest a fixed amount every month in a mutual fund plan, then you don’t need to set aside time for it.
Have the necessary documents ready To start a SIP, you need to have some important documents. These include PAN card, proof of address, passport size photograph and check book.
Checkbook because it also contains your account number, etc. It is now mandatory to link Aadhaar to your mutual fund investments by March 31.
KYC Required Know Your Customer (KYC) is required to start investing in mutual funds. You have to give the necessary information like name, date of birth, mobile number, address, etc. You have to give this only once.
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You can also complete the KYC process, i.e. e-KYC online. You can also complete the e-KYC process by visiting the Birla Sun Life Mutual Fund, Quantum Mutual Fund, CAMS and Karvy websites.
You have to upload basic information and electronic copy of PAN and proof of address. After this, a video call will be scheduled, through which your physical presence will be verified.
You can also complete the e-KYC process through the Aadhaar number. However, there is a maximum investment limit of 50 thousand in a fund house annually.
You can raise Rs 5 crore in this way, the future will be safeundefined
It is important to start investing at an early age: In order to raise a large amount in the future, the most important thing is to start investing in suitable investment instruments at an early age.
For example, if one plans for 20 years at the age of 24-25 and then continues to invest in a disciplined manner, there is no doubt that when he reaches the age of 45, he will accumulate the amount he had. planning.
SIP is a good approach: Despite the volatility in the stock market, SIP is one such method, from which you can expect to increase the target amount in a stipulated time. On average, you can expect a 12 to 15 percent return on money invested in mutual funds.
It depends on the return investment: in case of earning a return of 15%, you will need to deposit Rs 33,000 every month to raise Rs 5 crore in 20 years. On the other hand, if a return of 12 percent is expected, which is a bit plausible, then you need to deposit around Rs 50,000 per month to raise Rs 5 million in 20 years.
Select only two or three mutual funds: It is often better to choose only two or three mutual funds. By keeping your portfolio limited to two or three, you can manage them well. In this process, with the help of financial experts, you can choose small-cap, mid-cap, infrastructure, etc. schemes.
Tags: mutual fund, mutual fund investors, Investment funds, Mutual Fund SIP Yields
PUBLISHED FOR THE FIRST TIME : July 25, 2020, 09:19 IST