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How to start investing in SIP: Know how to start investing in SIP?click to know


The share market is very much in trend these days. Financially strong people are investing heavily in the stock market and buying shares as per their needs. But the share market is a deal of profit as well as loss. At the same time, if you are middle class or a common person then investing in SIP is a better option for you than the share market. People like you and us constantly save a part of our monthly savings for a better future.

In such a case, by investing a fixed amount every month in a mutual fund through a Systematic Investment Plan or SIP, we can accumulate a good amount of money. Let us tell you what is the method of investing in SIP (SIP me invest kare kare) and how it can be beneficial for your future.   

What is a Systematic Investment Plan (SIP)? (What is SIP in Hindi) 

First, let us tell you what is SIP. SIP, which is fully known as a Systematic Investment Plan, is mainly a way of investing on a monthly basis. Suppose you earn Rs. per month. Earning Rs 50,000. After all expenses, you get Rs. 20,000, out of which you get Rs. Want to keep Rs 10,000 as cash? And you can use the remaining ₹ 10,000 to invest in one or more mutual funds through SIP. You can either invest ₹10,000 in a mutual fund SIP. Under SIP, you are required to invest that fixed amount every month on a pre-determined date. However, you can withdraw your investment at any time.

How to start investing in SIP: How to start investing in SIP?

You may need better guidance to invest in SIP. You can invest in SIP with just Rs 500. But to invest in SIP, you also need to know the following: 

Your financial goals should be set

The objective of every mutual fund scheme is that the investor receives investment funds. Before investing in SIP, you need to understand and plan your financial needs and know whether the mutual fund scheme matches your financial goals or not. If you are finding it difficult to choose an investment plan that meets your needs, you can take help from an experienced financial expert. Remember, do not choose any plan in a hurry because its risk can be big.

It is better to do SIP over lumpsum investment

Investing in mutual funds has now become very easy. You can invest in mutual fund schemes in two different ways. In business language this is called a lumpsum investment process. Under this investment plan, firstly, a significant amount of your savings gets accumulated and secondly, there is a systematic investment plan which helps you gradually. If you are a salaried person, then you should choose the option of SIP because with this you do not have to worry about budget while planning for investment.

It is mandatory to complete KYC process 

To invest in SIP, you must have a bank account and along with this you will also have to get your customer KYC done. As per the rules of Securities Exchange Board of India or SEBI, KYC verification process is mandatory for every investor and without it, you will not be allowed to invest in securities or mutual funds. 

How much should you invest in SIP?

Now you must be wondering how much should I invest in SIP (sip investment pros and cons). Let us tell you that according to experienced financial planners, a person should invest at least fifty percent of his income in mutual funds and equities through SIP (how to invest in SIP).

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