If you remember the childhood story of the Tortoise and the Hare, then the Systematic Investment Plan (SIP) is equivalent of the tortoise in the race to create wealth. SIPs make sure that you continue moving slowly but surely to win the race in money matters!
Some of the points you might want to think through before starting an SIP:
1) Decide on the monthly investment amount that you can sustain over the investment period. For example, it can be Rs.1000, Rs. 2,000, Rs. 5,000 or any amount that you are comfortable with.
2) Select the funds in which you want to invest through SIP, but make sure that the portfolio is diversified. For example, you can invest Rs.1000 in 5 funds if you had chosen Rs. 5000 as the sustainable monthly investments in the previous point.
3) Understand the entry and exit loads applicable for SIPs. Some schemes have no entry / exit loads for SIPs over certain period. So, if you withdraw funds within the specified period, you might be charged the entry and exit loads. Or some funds require you to keep the funds with the mutual fund for a certain period and in case you withdraw within the period, the mutual fund house may charge you only exit loads.
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How can you SIP on FSM?
Go to Transaction Tab > Systematic Transaction > Apply SIP
Select a Fund
Select Bank for ECS
Print ECS Mandate Form
Attach self-attested cancelled cheque with the ECS Request
The ECS application will be submitted to your bank (Note: ECS confirmation may take up to 25 working days)
Do not hesitate toContact Us for any information or assistance required!
The Content Team is part of iFAST Financial India Pvt Ltd
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