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Study your financial goals: Is it an emergency fund or a retirement corpus? Let’s suppose you are building an emergency fund, then investing about 3 to 6 months of pay in a year is generally followed. If you’re wondering – “How much should I invest in SIP per month?” here are some pointers for you:ġ. However, the ideal amount differs from investor to investor. SIPs do not have an upper limit on the periodic investment amount. Instead of lump sum (one-time) investment, you will choose the SIP option that allows you to invest in small quantities on a regular basis. Pick a date according to your income schedule, that is, for after you receive your salary or business income.Īlternatively, if you already have a trading account, you may start a SIP directly with the mutual fund house or your broker using the online method. Select the date of SIP: On this date, your money will get auto-debited from your bank account.Complete the Know Your Customer (KYC) process: You need to comply with the KYC process for investing in SIPs, during which the mutual funds company will register your personal details, including but not limited to your name, date of birth, mobile number, address, etc.
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You need to have Aadhaar Card or PAN for investments in mutual fund schemes. Provide residential proof: Gather documents such as driving license, bank statement, utility bill, passport size photos, and checkbook.
SIP AND PLAY VERIFICATION
Provide a canceled cheque towards KYC and bank account verification.Fill up the application form at your preferred AMC.Choose a mutual fund for your investment: The selection should be based on your risk profile and your personal financial goals, and other analysis parameters such as fund returns and expense ratio.Usually, the higher the age and financial obligations, the lower is the risk tolerance. Understand the objective of investment and your risk tolerance level: For this, you need to know your investment goals-your kid’s education, or marriage, or a new car? You must evaluate your risk appetite before investing.
SIP AND PLAY HOW TO
How to invest in SIP?įollow this step-by-step guide to understand how to invest in SIP: SIPs usually allow you to invest periodically, whether it’s weekly, quarterly, or monthly.įor instance, if your SIP is scheduled for the 10th of every month, then a predecided amount will be debited and invested towards the mutual fund every month on that date. A fixed amount is deducted from your bank account every month. When you invest in a SIP, you invest a small sum regularly in a mutual fund scheme of your choice. SIP is merely a method to invest in mutual funds, the other method being a lump sum. Remember, SIPs and mutual funds are not the same. Most importantly, if you invest in mutual funds with a SIP, you don’t have to time markets! SIP helps to stagger investment and also gives the benefit of rupee cost averaging.