A brief about SIP

We all need to initially know what a SIP or a systematic investment plan means. A systematic investment plan is a plan which basically helps the investor invest at regular intervals of time in a mutual fund scheme, and usually an equity mutual fund scheme.

One needs SIP in their life for multiple amounts of reasons. People who already have Kotak Mutual Funds SIP should also be more aware of it so that it raises awareness and they can use it fruitfully. Once you have a systematic investment plan, it creates a lot of financial discipline in our lives. Not only that, it reminds you to invest regularly at correct intervals without the pains of wrestling market moods and index levels. Nothing could be better than that.

Just in case, in a situation, we are supposed to pay a fixed amount every month for mutual funds and when the time is right for it, I might have concerns like market conditions and might even think of postponing investments. This stage is completely erased by the systematic investment plan. The money gets automatically invested regularly in the scheme opted without any efforts by us.

Opting for Kotak Mutual Funds SIP has always proven to be a wise decision in many aspects. They not only help us to minimize our purchase costs but also automatically minimize the returns. When we invest regularly irrespective of the markets conditions, we get to have more units when the market is low and vice versa. This phenomenon averages out the purchase costs of the mutual fund units.

One of the most important benefits but also known as the eighth wonder of the world is known as compounding. When you have been investing over a long period of time and you end up earning returns over the returns earned of your investments, that’s when your money starts compounding on its own. This helps the person build a large corpus for themselves and helps in achieving our long term financial goals with small regular investments.

How to start an SIP online

SIP or systematic investment plans are a fast growing investment platform for individuals willing to invest small amounts in regular intervals. Under a Kotak Mutual Funds SIP, an individual invests a fixed and recurring amount of money which in turn accumulates and multiplies in the long run. Starting a SIP is a simple process and can be done online.

Following are the steps to INVEST IN SIP online:

Important documents: in order to start a SIP the investor requires some necessary documentation which has to be ready beforehand. Some of these documents are PAN card, address proof, checkbook, and a passport size photograph. A bank statement or driving License can be used as a proof of address. Although AADHAR card number isn’t necessary it definitely simplifies the process. An investor can process a SIP once these documents are ready.

KYC: To invest in mutual funds investor has to provide some necessary details like name, date of birth, address and mobile phone number to generate a KYC. It is a one-time thing an investor needs to do and makes it possible to invest in multiple funds. To get the KYC done, the individual needs to login onto the website of the fund house and provide the required details like name and address.

Starting the Kotak Mutual Funds SIP: once the SIP is done the investor can start the SIP. The individual can do so by going to the website of the fund house and looking for the ‘register’ or ‘new investor’ link. The investor now has to fill in the important details when prompted to do so and create a username and password for the transactions.

Using these 3 simple steps to start investing in a Kotak Mutual Funds SIP even an ordinary individual without any market knowledge can become a smart investor without any hassles.

Benefits of SIP

There are a huge number of benefits we achieve if we involve our funds and ourselves into systematic investment plans. Some of them are listed below:

• savings are more disciplined: Planning and discipline are very crucial elements of investing in a sip plan. When we all agree to invest in Kotak Mutual Funds is one of the best sip plans in India, we obviously agree to invest in regular intervals. Investing in regular intervals makes us more disciplined and it is also very important to start investing a bit early in life to inculcate qualities like discipline.

• Flexibility: As we all know A Kotak Mutual Funds SIP plan doesn't consist of any lock-in period. Even though, investors are recommended and advised by all means to learn how to invest in sip plans for a longer period of time so that we gain maximum returns for our investments and attain our long term goals through the same. Nevertheless, investors can exit the sip plans whenever required.

• long terms gains: SIP plans are best known for long term investments. The investor might not notice the saving and profits initially but gradually after a point of time, there's a huge growth of invested money. The two major reasons responsible for the growth are rupee cost averaging as well as the power of compounding.

• a convenient form of investment: SIP plans are the most convenient and hassle-free forms of investment. We can always authorize ECS mandates from banks which will automatically keep paying for our Kotak Mutual Funds SIP on a regular basis.  

• moderate levels of risk: Usually, small retail investors do not possess a lot of resources for active investment purposes. So this is what encourages them to opt for SIP plans, as it's the only way which lets them earn above-average returns on their regular investments with less to moderate amount of risk.

• Another advantage, called the eighth wonder of the world by a few, is the intensity of exacerbating. When you contribute over an extensive stretch and win returns on the profits earned by your speculation, your cash would begin intensifying. This causes you to construct a large corpus that assists you to accomplish your long haul financial objectives with little general predictions.