How To Start An SIP Online in Three Simple Steps
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Starting a SIP investment plan is one of the smartest ways to build long-term wealth while effectively managing risk. By investing systematically, you harness the power of compounding and create a disciplined approach to achieving your financial goals. This guide will walk you through the three simple steps to start a SIP online and make informed investment decisions.
An SIP investment plan is a simple and cost-effective way to invest in mutual funds. It allows you to invest small amounts of money into a mutual fund on a regular basis, helping you to build a diversified portfolio and benefit from the power of compounding. In this article, we will discuss how to start an SIP online in three simple steps.
Step 1: Define your Goals
The first step in starting an SIP is to define your objectives – that is, “why” you are starting the SIP in the first place! Instead of shopping around for the highest return fund, it makes sense to base your online SIP investment plan on your goals and objectives first. This simple yet powerful step will set you up for success in your SIP investment plan. For example – you’ll automatically gravitate towards high risk/high return funds for long term goals such as your retirement, while restricting yourself to low-risk funds for shorter term goals. In other words, you’ll automatically be a much smarter and wiser investor if you start by defining your goals.
Step 2: Select your Funds and Open an Online Account
The next step in your SIP investment plan would be to select the right mutual fund for your investment goals. Consider factors such as the fund’s past performance during bad times, its long term returns (how consistent it has been, not whether it has outperformed in the short term), the fund manager’s experience, and the investment objectives of the fund. You can also use the services of an online mutual fund advisor to help you make an informed decision.
Once you have chosen the right mutual fund, the next step is to open an online SIP investment account with the your Advisor. At FinEdge , this is a simple and paperless process that takes just five minutes. The online account allows you to make investments, track your investments, and make sure that you’re on track to meet your goals.
Step 3: Set Up the SIP
Once you have opened the online account, the next step is to set up the SIP based on your goal based investment plan. This involves choosing the amount you wish to invest, the frequency of the investment and the duration of the investment. You can also choose to invest a lump sum or set up a Systematic Transfer Plan (STP) to transfer money from your savings account to the mutual fund account. Once the SIP investment plan is set up, you should ideally review your portfolio and your goals with your mutual fund advisor at least once a year.
These are the three simple steps to start an SIP online. With a little bit of knowledge and the right advice, you can easily start an SIP and benefit from the power of compounding.
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