if we talk about today’s era, then people are getting rich by investing money in the stock market. People investing money in the stock market are getting very good returns. Because of which even those people who never even knew the name of share market have started investing in this market.
Mutual funds are adopted to invest in this new market, it is an accurate and simple way to invest. You can invest in mutual funds every month using SIP (Systematic Investment Plan) method. You can start SIP with just ₹100. It is just like the bank’s RD but in this you get a much better return than the bank.
You can invest in SIP by deducting the fixed amount every month from your bank account. In the last few years record breaking investment has been seen through SIP. SIP gives the facility to invest in mutual funds in the form of monthly, weekly and daily installments. You can see different types of advantages and disadvantages at each turn of sip. If you want to get maximum returns by investing money in the stock market now, then in this post we will tell you what is SIP and how to invest in SIP. Its full form of profit and return in SIP will explain everything in detail.
What is the full form of SIP?
SIP is one such plan to invest in Mutual Funds and whose full name is Systematic Investment Plan. And in English it is called SIP ‘Systematic Investment Plan’.
What is SIP?
SIP is a plan through which you invest a fixed amount in a mutual fund at a specific time interval. SIP calculates the total investment cost incurred by you. And gives you the flexibility to invest up to your financial limit.
What is NAV (NAV)
According to NAV (Net Asset Value) which means net asset value is invested in mutual funds through SIP. At that time, the price of a unit mutual fund is fixed according to the asset value.
How to invest in SIP (SIP Invest)
Investing in SIP is very easy, you can invest in it in two ways. First direct plan and second regular plan through which investment can be made.
In this, direct investment can be made in any company through AMC, it gives good returns. New investors may find it difficult as there is no one to guide them and the chances of loss are high. Due to lack of information, it is difficult to analyze, which can also cause loss.
In the regular plan, the investor and the middle broker or middleman of the market are involved. And the broker buys the AMC scheme, after which the investor gets invested. In the regular plan, the broker advises the investor to invest in the right mutual fund, which makes it easier for the investor.
Benefits of SIP (SIP Benefits)
If you are a SIP investor, then you can get many types of benefits in this if you file income tax return. So you will get the benefit of SIP as it gives exemption in tax return.
This can be a better option to save because in this you do not have the burden of paying money every single month, you can invest annually if you want. And can deposit a lot of money, this can be a better option for those who are afraid of taking risks.
In SIP you will get the benefit of compounding like if you are investing for a long time then you get profits. You can invest in sip by watching the returns rising in the market.
You can also stop the SIP if the market falls.
If you have missed SIP, then you may also have to bear the loss.
Money will have to be arranged every 1 month, other losses may also have to be incurred.
Good returns are not available when the market is volatile.
If your source of income is not regular then do not start SIP as it will only harm you.
SIP Invest Documents
These documents are necessary for investing in mutual funds, cryptocurrency, share market or availing banking services.
- Aadhaar Card
- Pan Card
- Bank Account
- Bank Statement
- Check Book
- Passport size photo |
Through all these documents one can easily invest in SIP. And can start investing by creating an account through online website or application. Demat account is opened from the document and KYC process has to be completed for fund investment, without KYC you cannot invest. In KYC you have to enter name address email id date of birth mobile number and bank details.
What is the risk in SIP investment (SIP Invest Risk)
If we talk about how much risk is there in SIP, then there is definitely a little risk in everything involving money. In the same way, there is the same risk of risk here, investing in SIP with small funds can remove the risk of more risk. If you are investing in a company which is running at a loss then there is a risk of money sinking.
In the short term, there can be losses on investment and for long term investors, the opportunities for loss are less. Apart from this, breaking the ongoing SIP in two to three months can result in losses due to non-completion of the SIP process. A sudden crisis on the company can also cause loss.
SIP Investment Best Funds
Sl.No. No. Fund Name Monthly Investment 3 Year Returns 5 Year Returns
- Axis Bluechip Fund 5000 18.30% 11.30%
- Axis Focused 25 Fund 5000 16.64% 17.19%
- DSP Equity Fund 5000 14.69% 14.36%
- ICICI Prudential Technology Fund 5000 41.39% 33.91%
- HDFC Balanced Advantage Fund 5000 16.60% 15.50%
- ICICI Prudential Bluechip Fund 5000 8.48% 10.81%
- Kotak Standard Multicap Fund 5000 11.14% 13.24%
- Quant Infrastructure Fund 5000 38.02% 24.14%
- Nippon India Large Cap Fund 5000 8.42% 10.90%
- Tata India Consumer Fund 5000 14.70% 15%
- ICICI Prudential Multicap Fund 5000 16.68% 13.62%
- IDFC Government Security Fund 5000 11.39% 8.93%
- iDFC Government Security Fund 5000 11.32% 9.73%
- Nippon India Investment Target Fund 5000 11.21% —-
- IDFC Government Security Fund 5000 11.18% 8.29%
- ICICI Prudential Constant Maturity Gilt Fund 5000 11.17% 8.84%
- DSP Government Security Fund 5000 11.08% 8.59%
- adele weiss government securities fund 5000 11.04% 8.60%
- ICICI Prudential Constant Maturity Gilt Fund 5000 10.96% 8.65%
- Tata Digital India Fund 5000 41.48% 35.52%
[ conclusion ]
So friends r through this post we have told you what is SIP? How to invest in SIP, and get returns in SIP! 2023 Complete information has been given in detail. If you like the information, please share it with your friends on social media platforms.