A Step By Step Guide to Starting Your Systematic Investment Plan

A Step-By-Step Guide to Starting Your Systematic Investment Plan “Organizing is what you do before you do something, so that when you do it, it is not all mixed up.” – A.A. Milne And when it comes to investing in securities, organization is all about the investment plan you formulate before you invest so that you reap the maximum benefits of the venture. It involves specifying your investment objectives, expectations, risk tolerance and current income. Often, investors are unable to afford lump-sum investment amounts owing to the present requirements and a need to cut down on costs. For such individuals, rupee cost averaging by means of a Systematic Investment Plan acts as the perfect solution. So, what does SIP entail, and how can you start investing in SIP online today? Here’s a look: What is SIP All About?  A Systematic Investment Plan allows an investor to invest specific denominations of the investment corpus at regular intervals. This technique is popularly referred to as rupee cost averaging.  SIP investment plan is considered one of the most secure and organized means of investing in securities. It allows you to prepare for your future while also taking cognizance of your present requirements and financial limitations.  Investing through SIP ensures that you do not splurge on investment avenues but reserve a specific percentage of your income regularly towards investing in securities.  Typically, individuals invest in SIP at monthly, quarterly or yearly intervals, considering their investment amounts, income and affordability.  Another major advantage of a Systematic Investment Plan is that based on fluctuations in one’s income and purchasing power, an investor may vary the investment amounts deposited at each interval. This ensures that the investment amounts deposited by the investor are commensurate with his/her present financial circumstances.  Long-term investment schemes such as the National Pension Scheme (NPS) and other mixed mutual funds avenues lend themselves well to a Systematic I A Guide to Investing in SIP Online

Here is a step-by-step process to investing in SIP online in India: 1. Set an Investment Objective: Start by understanding what investment securities you would like to invest in based on your investment objectives. Chalk out clear and concise investment objectives and articulate your risk tolerance levels, expectations and current affordability while formulating your investment plan. 2. Gather the Required Documents: Next, you may want to prepare for the e-KYC process for which you would require certain documents. These include:  Your address proof (AADHAAR card, driving license, electricity bills etc.);  Your identity proof (PAN card, voter ID etc.);  Your cheque book;  Your passport-sized photograph. 3. Complete the e-KYC Process: Now, visit the website of your fund house and complete your e-KYC process by filling up the given application form. Typically, this form requires you to fill out the basic details such as your name, date of birth, address etc. 4. Appear for a Face-to-Face Verification Process: After completing the e-KYC process, you may have to appear for a face-to-face verification process over a video call. OR Complete this Process With Your AADHAAR-Card: Alternatively, you may complete this verification by entering your AADHAAR number and subsequently the One-Time- Password you may receive on your registered mobile number. 5. Apply for an SIP: After having completed your authentication process, you would have to register for an SIP investment plan. Typically, the fund house should contain an application form to apply for an SIP for your investment. 6. Select the Details for Your SIP: Finally, you would have to specify the interval at which you may want to deposit the instalments of your investment amount, i.e. monthly, quarterly, yearly etc. You may select the interval based on your current income, affordability and convenience. Conclusion

There is no one right way to invest in securities – each investor finds out his/her preferred investment strategies based on his/her risk tolerance and objectives. And SIP is the perfect investment options individuals looking to invest in an organized and planned manner without spending huge lumpsum amounts. Consulting trustworthy share market brokers and understanding SIP as an effective investment method can only help investors make a wise and conscious decision. We would be happy to help you invest through SIP in your desired securities.