Set It And Forget It With Systematic Investment Plan

Set It And Forget It With Systematic Investment Plan WC Securities

What is SIP? The full form of SIP in India is the Systematic Investment Plan. In some countries, it also means Guaranteed Investment Plans or Small Investment Plans. It works on a principle that is somewhat similar to a recurring deposit bank account. That is, you will invest small amounts of money each month in a Systematic Investment Plan. For the money, you will get a certain number of units of the SIP Mutual Fund that you have chosen.

As you add money, the number of SIP mutual fund units in your investment portfolio keeps increasing. Now you might be wondering, isn’t it better to opt for a recurring deposit instead of a SIP investment? Here are the answers.

How to start a Systematic Investment Plan (SIP)

Investing in a SIP to get the best returns is not as easy as walking to a bank and depositing money. There are a few steps you’ll need to take. 

Define your goals

Defining your goals for investing in SIP is the most important step. Because that will help you decide the type of mutual fund SIP, the amount of the contribution, and the duration of the SIP Investment plans. The most common goals for investing in SIP are: You can have more than one financial goal in starting a SIP investment. In fact, that’s what most people do. They identify more than one target before investing in a SIP.



Come up with a figure

Decide how much money you want to invest in one or more SIPs. SIP investment plans can help us to be more disciplined in our spending and saving. Contributing to a SIP is a monthly commitment.

You can skip the monthly amount and nobody would do anything. In the worst case, you will receive a friendly reminder from the mutual fund SIP provider, saying that a fee has been missed.

However, skipping or missing an installation can defeat the entire purpose of a SIP. The number of mutual fund units in your portfolio will not increase, causing you to lose the increase in value and earnings. Therefore, it is very important to come up with a realistic figure for how much money you can invest in a SIP without losing a fee.



Know your risk appetite

Risk appetite? Yes. In simpler terms, how much risk can you take with your SIP investment plans?

Under the rules of the Securities and Exchanges Board of India (SEBI), every AMC has to display something known as a Riskometer in addition to their Mutual Fund.

In general, taking a higher risk can lead to higher profits. But it can also cause you to lose your valuable SIP investment due to various factors.

A low-risk mutual fund means that your investment would be quite safe, regardless of external factors. Low risk, on the other hand, equals lesser investment rewards. So study well because you will have to decide what your risk appetite is. Plus, you can decide your risk appetite by finding out how quickly you want to meet your financial goals with a SIP investment plan.



Aadhar link and permanent account number

Once you have taken the above three steps, the next step is to link your Aadhar card and Permanent Account Number (PAN). This is a must if you are going to invest in SIP online. This process is very simple.

To invest in a SIP, you will need to complete the EKYC. When your Aadhar and PAN are linked, this becomes much easier.

You will need the mobile phone number that you provided when applying for the Aadhar card. This is because the Unique Identity Development Authority of India (UIDAI) will send you a one-time password on that mobile number to complete the Aadhar-PAN link. There is nothing to worry about if you don’t have the mobile number provided at the time of Aadhar registration – visit the nearest Aadhar registration center.

You will need to submit a completed form mentioning your new mobile phone number. You will need to undergo biometric verification to update your phone number on UIDAI’s records. Usually, this takes from a week to 10 days.

Contact Us WC Securities is a specialized Private Wealth Management firm that provides a wide range of wealth management services to individuals and corporate clients. The primary objective of the company is to create and preserve wealth. We are serving our clients for the last 18 years by giving our best services.

Website - https://www.wealthcareindia.com/