New Delhi. In this Corona crisis, it has become very difficult for the common man to save money. At the same time, investors have suffered a big blow due to the reduction in interest rates on FD (Fixed Deposit). Experts say that this is why investors have now rapidly increased investment in mutual funds SIP (How to Invest in SIP). According to the data, in the first six months of the year 2020, more than Rs 50,000 crore has been invested through SIP. This is 3 percent more than last year.
Escort Security’s Research Head Asif Iqbal says that SIP investment has increased due to the rise in the stock market. In the last one month, DSP Top-100 as well as Axis Blue Chip, BNP Paribas have given a return of 15 percent. Let us tell you that Systematic Investment Plan allows you to invest a fixed amount every month in the mutual fund scheme of your choice.
How to start Mutual Funds SIP-If you want, you can invest every week through SIP. Discipline is very important in investing. SIP maintains discipline in investing. Apart from this, it keeps investing regularly. Whether the market is bullish or bearish, your money keeps going into mutual funds. For example, if you decide to invest a fixed amount every month in a mutual fund scheme, then you will not need to take out separate time for this.
Keep the necessary documents ready To start a SIP, you must have some necessary documents. These include PAN card, address proof, passport size photograph and cheque book.
Check book because it also contains your account number etc. Now it has become mandatory to link Aadhaar with your mutual fund investments by March 31.
KYC is mandatory Know Your Customer (KYC) is mandatory to start investing in mutual funds. You will have to provide necessary information like name, date of birth, mobile number, address etc. You have to provide this only once.
read this also-Good news! This bank will be open 24 hours on WhatsApp, many services will be available on one message
You can also complete the process of KYC i.e. e-KYC online. Apart from Birla Sun Life Mutual Fund, Quantum Mutual Fund, you can also complete the process of e-KYC by visiting the website of CAMS and Karvy.
You will have to upload basic information and soft copy of PAN and address proof. After this a video call will be scheduled through which your physical presence will be checked.
You can also complete the process of e-KYC through Aadhaar number. However, there is a maximum limit of Rs 50,000 investment per year in a fund house.
This way you can raise 5 crore rupees, your future will be secure
It is important to start investing at an early age: To accumulate a large amount of money in the future, it is most important to start investing in suitable investment instruments at an early age.
For example, if someone makes a 20-year plan at the age of 24-25 and then continues to invest in a disciplined manner, then there is no doubt that by the time he reaches the age of 45, he will be able to accumulate the amount he had planned.
SIP is a good way – The stock market keeps fluctuating, yet SIP is one such way through which you can expect to raise the targeted amount in a fixed time. On an average, you can expect a return of 12 to 15 percent from the money invested in mutual funds.
Investment depends on returns – In case of 15% return, you will have to deposit Rs 33,000 every month to raise Rs 5 crore in 20 years. On the other hand, if 12% return is expected, which is a little practical, then you will have to deposit about Rs 50,000 per month to raise Rs 5 crore in 20 years.
Select only two-three mutual funds- Often it is better to select two to three mutual funds. By limiting your portfolio to two-three, you can manage them well. In this process, with the help of a financial expert, you can select small cap, midcap, infrastructure schemes etc. for investment which have a better track record and give good returns.
Tags: Mutual Funds, Mutual fund investors, Mutual Funds
FIRST PUBLISHED : July 25, 2020, 09:19 IST