SIP: The modern option of handsome saving


In this era of an uncertain life, one has to keep prepared to meet different challenges emerged by time. Hence every individual saves a little amount from his income at regular interval and tries to create a good portfolio. The foremost important thing for an individual is an investment of the saved amount as what options are there where he can deposit his hard earned money. Though the market offers a lot of options, each of them needs to be well-researched by an investor before investing his money. He needs to see that the money is safe with desired liquidity and also fetches a good return. Looking at all these requirements, the best option in the present market is an investment in mutual fund where the money is safe and can grow significantly.

The investment in MF:

One can find many companies in the mutual fund market that has various options to offer to the investors. One can go for a medium to long term investment, which can help him grow the portfolio to the desired level at the end of a certain period. One can invest the amount in one shot or can also go for the same with the help of instalments. The investment via instalments in a mutual fund is called SIP.

How to start SIP?

Those who want to save little amount every month and go for the investment of the same, the SIP can be the most lucrative option. The method to invest in this option is simple and easy. In this age, every company has SIP investment options in the form of offline and online. In the offline option, one needs to fill the application form manually and submit the same with supporting documents to the company and also offer a cheque for the concerned amount.

Once the application is processed and the amount is debited from the account, one can get a statement from the company where there is a folio number mentioned. The folio number is just like an account number from where one can fetch all the details of the investment.

There is also an online option where the investor needs to fill the application form online and upload the necessary documents. He needs to transfer the amount to the company online only. Once the application is accepted by the company, he is provided with the statement and folio. In this statement, one can know the date of investment, a number of the folio, type of fund, NAV at which his investment is done, the number of units he has got and the total amount invested as well as the charges if there are any.

Why go for SIP?

SIP is an effective option when it comes to achieving the desired financial goal at a certain period. There are many benefits associated with this option, and hence, it is a much-loved option by the investors. The amount one needs to invest here can be a minimum of 500 a month. One can also track NAV at regular interval and know if he has gained from the investment or not.

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