Two important things you need to ensure while investing in SIP is :
Discipline: If you ask any financial advisor how to approach towards wealth creation through investing, this is the first advise you will get which is a fundamental concept of investing. But disciplined investing is not an easy task. This require proper knowledge and required tools.
Regular Asset Allocation: This is the key to SIP Wealth creation as it helps you to get a fair average price for your purchase. But owning to the market volatility many investors discontinue their allocation and doesn’t get the right benefit of SIP.
Nevertheless, there are many smart ways to tackle it.
Mutual Fund SIP:
If you are not a market expert and still you want to compound your money in long term. Investing in Mutual fund on SIP basis can be a fantastic wealth creator for you.
All you have to do is follow below steps:
Steps:
- You can do SIP via your broker(like icicidirect, upstox) platform and use their mutual funds platform to buy via SIP .The bought funds will be there in your demat and money will be deducted from trading account.
- You can do SIP directly from the fund house or compnt running the mutul fund. For this , you need to Complete the KYC process: the documents needed are PAN Card, Address Id, Cancelled Cheque, Passport size photo
- Choose your funds: Can be Equity fund, balanced fund or dept fund as per your investment goal.
- Set the Sip amount, frequency of SIP and Date when the money should be deducted.
E SIP: Equity Systematic Investment Plan.
It helps your small savings evolve in to sizable corpus for your future.
Steps:
- Select the stocks you want to invest in.
- Need a demat account which should have sufficient balance.
- Login to the your trading account buy desired amount or quantity on a date of your choice.
For example, you can to buy 100 shares or invest Rs 5,000 in a specific share on the 5th of every month, for next 1 year.
- It enables you to accumulation the shares of your chosen companies over time by placing a request in advance . Money will be allocated for you shares regularly and with discipline.
Would come on many more interesting articles on investing and Finance. Till then stay connected with us..:)
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