How to invest through SIP?



How to invest through SIP?

 You can opt to go for SIP with the help of an agent ( usually bank representatives or mutual fund company employees) or directly with your smartphone. Keep in mind that the agents usually would want an incentive to get a customer and therefore they may advise you for indirect mutual funds.

Difference between Direct and Indirect Mutual Fund?

In Direct mutual funds, there is no agent commission involved and so the return is always a tad bit more than indirect funds. A person may lose upto 25 lakhs or more if invested for a long time.
In Indirect mutual funds, there is commission paid to the broker for the services he has provided to the funds company. The commission is paid out of your invested corpus.

Documents Required to start a SIP:
  • Pan Card
  • Address Proof
  • Chequebook
  • Passport size Photograph
After arranging all the documents you need to get you KYC done. KYC i.e. know your customer is required to open a folio account in the mutual fund company. KYC would include your name, date of birth, address and mobile number.

SIP creation:

After your KYC is complete you can start investing in the best performing schemes. You can use the apps like ET Money, Paytm Money, My CAM App etc. There are various apps available so you can invest in Direct Mutual Funds. 

Steps to be followed in the app:
  1. Select the fund you want to invest in.
  2. Decide the amount you want to invest every month.
  3. Choose the SIP date when you want your account to be debited.
  4. You can withdraw anytime (except ELSS funds), but there may be an exit load of 1% if you withdraw within 1 year.
Follow @rdhmfinance on instagram for latest updates.

Thanks for reading!
Please comment on any financial query you had like me to address. I will try to post something worthwhile. 

Coming up Next: How to evaluate the funds you want to invest in?


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