Online SIP Investment: A Great Way to Yield Profitable Returns 

Do you want to build wealth the safest way? Worry not as there are many simple and easy ways to do it. One of the best options for wealth building is to invest in mutual funds. Though some are skeptical about investing in stock market, others are not. If you are a novice wanting to gain potential benefit through mutual fund investment, then sip would be the right choice. SIP (Systematic Investment Plan) is one of the safest investment methods to gain high returns. The plan works well if the money is invested for a long-term rather than a short-term.

SIP way of investment is safe as the investment amount is fixed and paid at a regular period. Not only this, the method is flexible and is apt even for all types of investors. The minimal sip amount that you can invest ranges from INR 500 to INR 1000. This can later on be increased based on the specific requirement of the client. Before starting your own sip plan, it is essential to do a thorough research online. Many investors fail to do so and end up choosing the plan that will not yield benefit.

Amazing Benefits of SIP That You Should Know About

Sip comes with a host of benefits that make it a preferred choice among investors. Here are some top reasons why many opt for sip plans.

• Sip follows the power of compounding, which increases your investment amount over a period of time. This being the case, there are no market risks involved as the customer makes only a minimal amount of investment. The rate of interest will add up to your principal amount and help you reap bulk profits at the end of the plan tenure.
• When it comes to sip, customers have the options to bail out money as and when required. However, it is advisable to invest for a long period of time to gain benefits. In case of emergencies, you can withdraw the cash and continue to save your money until the stipulated period.
• It is one of the safest and disciplined investment approaches that do not pose a high risk. As the money is segregated and invested in different funds, the market risk is reduced. Even if one fund is not performing well, the remaining funds will prove to be beneficial. There are also options where you can either increase or decrease your amount based on your situation.
• Starting a sip account online is quite simple and easy. Just a simple click and a few steps is required to open an online sip investment account. The process is hassle-free and can be done at ease. You can also get in touch with your fund house managers and get the necessary details related to it.
• There are also options where you can switch the funds based on their performance. If you are unsure as to how to do it, you can always get in touch with the experts and get the problem solved. Further, they will monitor your funds and make the switches to avoid any type of risk that may incur due to market fluctuation.

Starting Online SIP Investment: Key Points to Note

Opening a sip account is not a herculean task as one may think. It is quite simple and can be done without any hassles. Investing in sip is as simple as eating a pie! Investors who start sip account online have three types of options to choose from which include the short-term, long-term and medium-term. Before investing, it is best to know about these three investment plans in detail and choose the one that will fit your budget. If you are planning on investing cash for a future gain, say 15 years, then long-term sip plan would be the right choice. You can also opt for medium-term investment that has a time duration of 2 to 5 years.

The first step towards starting a sip account is to complete the KYC (Know Your Client) process. It is mandatory for every investor to complete this process before registration of sip account. There are many agencies that provide all the necessary services for a hassle-free KYC completion process. After completion of the process, you can surf through the different fund houses and compare the products offered by them. You can also get in touch with the concerned experts and get your queries addressed.

After selection of the fund house, you can compare the different types of sip plans available. The amount you invest purely depends on your individual choice and may vary accordingly. You can either invest a small amount or a large sum of money based on your personal requirements. Many opt for investing small amount of cash as it is quite convenient and do not burden their wallet. There are also those who opt for a lump sum of money as investment for yielding higher returns. Whatever maybe the case, sip investment will yield profit as long as you follow all the guidelines.

What Not to Do While Investing in Sip

Though investing in SIP is quite safe, there are many factors that you should never overlook. Here are some things to be taken into consideration.

1. The first mistake to avoid is to go overboard when it comes to investment. If you are not comfortable with investing a lump sum of money, it is advisable to go for small amounts. This will help you balance funds even during market fluctuations.

2. Some investors leave their account unmonitored since the investment maybe for a long-term. It is advisable to constantly monitor the account to check how the funds are performing in the market. This will also give you a heads-up when you need to switch funds.

3. Withdrawing or closing sip account abruptly will not yield any type of profit. Some people tend to close their sip account due to fear of incurring loss. This can be avoided as the losses can be balanced if the investment is made for a long-term.

4. Picking the wrong fund should be avoided at all cost as it may change the game plan. Before investing in sip, make a note of your current financial situation, risk appetite, future goals, historical performance of the funds, and other associated factors.