How to start a SIP online in just 4 simple steps

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How to start a SIP online in just 4 simple steps
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What is SIP?

• SIP (Systematic Investment Plan) is an investment
  method offered by the mutual fund houses which
  work on the principle of regular investment to
  build a good capital return. Thus, instead of
  investing a lump-sum amount at one time, an
  investor just has to put small amounts every
  month through SIP.
• SIP can be of two types
• Fixed Duration SIPs
• Perpetual SIPs
• Normally it is regarded as a good method to sign
  up for perpetual SIPs if you have a long term
  investment goal.

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Why to invest in SIP?

• When an individual makes his investment through
  SIP, his money is actually invested in Mutual
  Funds. The return gained by the investor is based
  on the performance of these funds over a period
  of time. Although, based on the facts of past
  performances and the historical data Mutual Funds
  have performed well for a longer time period.
• Many financial capitalists also believe that
  investing your money in mutual funds, through SIP
  route is conceived to be a better long term
  investment option for growing your wealth.

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Why to invest in SIP?

• The financial institutions that deal with the
  mutual funds on behalf of their investors,
  depositors or clients and manage the assets of
  these funds are known as Asset Management
  Companies.
• In India, almost all of the major nationalized
  and NBFC banks such as SBI, HDFC, ICICI, Kotak
  Mahindra, Axis Bank, IDBI, HSBC provides
  SIP-mutual fund services. Other than banks,
  companies such as Reliance, Birla Sun Life,
  Franklin Templeton, Motilal Oswal, DHFL, LIC, DSP
  Black Rock also help you to invest your money in
  mutual funds - through SIP in a systematic way
  and guide you to establish a Balanced Financial.

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How to start a SIP online?

• An investor needs to follow these 4 comprehensive
  steps for starting a SIP online
• Get your KYC done
• Search for an online platform
• Select the right Mutual Fund
• Opening a SIP account and investing

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GET YOUR KYC DONE

• The prerequisite and one of the biggest pain
  points for investing in any mutual fund - SIP is
  to complete your KYC (Know Your Customer)
  formalities.
• An individual can log on to any AMC (Asset
  Management Company) or KRA (KYC Registration
  Agency) websites and submit certain documents
  (either online or by physically visiting the KYC
  centers). These documents include the copy of
  your PAN card and your Address Proof.

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SEARCH FOR AN ONLINE PLATFORM

• Choose the fund type which you are comfortable
  with regards to their offerings and services
• Regular Funds - One can approach many online
  brokers such as FundsIndia, Scripbox. It is
  recommended that if you are unable to understand
  the ABC's of mutual funds, go with Regular Funds
  platform.
• Direct Funds - No middlemen involved.

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SELECT THE RIGHT MUTUAL FUND

• Do thorough research about different schemes
  based on your needs for a Short-term, Long-term,
  Debt or Equity before investing in any Mutual
  Fund-SIPs.
• The 3 most important factors that one should
  consider before finalizing any mutual fund SIP
  portfolio are as follows
• Past performance and Ranking
• For measuring the performance of any scheme its
  ranking among peers should be evaluated. For
  this, you need to check the quartile ranking
  which will display how the prospective fund has
  performed over the period of time among its peer
  group.
• You can verify these rankings from the
  performance sheets of various AMC or other mutual
  fund research websites.
• Experience and viewpoint of Fund Manager
• Fund Manager plays a very important role in
  selecting a fund scheme. As he is the ultimate
  decision maker his experience and past records of
  managing funds should be looked at.
• Total Expense Ratio
• The total expense ratio is the measure of the
  total cost the investor has to pay for a fund.
  These costs may include the fees and expenses
  incurred for purchasing, redemption and auditing
  a fund. Select a fund which has a lower expense
  ratio as it will prove to be the most
  cost-effective scheme.
• For detailed information about how to select the
  right mutual fund scheme read the article- What
  factors you should consider while selecting a
  particular MF

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OPENING A SIP ACCOUNT AND INVESTING

• Once the online account is created, login to your
  account and go with the mutual fund scheme that
  you selected and then select the SIP date and
  duration as per your convenience and submit.
• Your SIP will start after a time period of 30 to
  40 days.

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Conclusion

• Always bear in mind that the most critical
  attribute while investing in any schemes is -
  Patience.
• Funds you are investing in are not risky, but
  your existing savings and your needs decide your
  capability to take risks.
• Don't ever make the mistake of blindly investing
  in funds that your broker advises.
• Afinoz, an online financial marketplace offering
  investment products will provide you with
  real-time SIP investment advice and services.
• It will also help you as a mutual fund advisor to
  get you the best performing Mutual Fund - SIPs
  according to your risk appetite. You can contact
  us for any investment advice at 0120-411-0376 or
  mail us at info_at_afinoz.com.

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Thank You !!!