SIP Planner

Systematic Investment Planning (SIP)
A systematic investment plan (SIP) is an option where you invest a fixed amount in a mutual fund at regular intervals. It could be monthly or quarterly. The minimum investment amount in most mutual funds is Rs 1,000 per month. The money is transferred through ECS after filling up the SIP Auto Debit mandate on a chosen date. SIP helps you plan for your long-term goals.

Disciplined & Regular Savings
A SIP is a disciplined investment plan and helps reduce susceptibility to market fluctuations. It is a powerful tool that helps you do cost averaging and allows you to benefit from market volatility, which translates into substantial wealth creation in the long run. Investors can select the tenure of investment according to their needs. Usually, you should stay invested for a long enough period, so as to maximise your returns.

Rupee Cost Averaging
When you buy more units at a lower price (when the market falls) and lesser number of units at a higher price (when the market goes up), you average out your investment costs. Suppose a monthly SIP is for Rs 10,000 and the fund's net asset value (NAV) is Rs 10. This will result in 1,000 units being credited to you. However, next month, on account of volatile market conditions , if the fund's NAV falls to Rs 5, you will get 2,000 units. This will lower your average purchase cost. A SIP helps you buy more when the stock market is falling and less when it is rising.

Reach Your Financial Goal
SIP is an excellent tool for investors to build wealth. There is no need for a one-time lump sum investment. A regular investment pattern helps build discipline in investors. You can go for a SIP according to your goal - educational needs of children, their marriage & your retirement corpus. The 'rupee cost averaging' makes the market fluctuations work in your favour.

This is a very convenient way of investing. You need to just fill up the SIP Auto Debit form along with a cheque for first installment or a cancelled cheque. The mutual fund will deduct the SIP amount on the chosen date and credit the units to one's account and will send the confirmation for the same.

SIP Planner
Small savings per month can become big amount over a period of time due to compounding effect. This procees is called- Systematic Investment plans (SIP). Check our calculator to know its power.
SIP Calculator
Disclaimer : The calculator is based on assumed rate of returns and is meant for illustration purposes only. It is neither an Investment advice nor should it be construed as Indicative of any of the schemes of Mutual Funds.