How to Invest in SIP?
Start your SIP online right away and enjoy the benefits of long term investment.
- Systematic Investment Plans (SIPs) are an excellent way to invest.
- They allow you to invest in small amounts.
- You can start a SIP online in just a few clicks.
When you invest, you want to grow your wealth to achieve your long-term goals. But you want to take as little risk as possible. With a little foresight and planning, you can achieve your financial goals, while minimising risk. One way of doing that is to invest small amounts regularly for a long time so that you spread your risk.
Systematic Investment Plans or SIPs allow you to do that and are among the most popular ways of investing in mutual funds.
Before we tell you how to invest in SIPs, here's a quick refresher on what a SIP is:
What is a SIP?
SIP is an investment tool, particularly favoured by individual investors. With a SIP, you invest a fixed amount of money at regular intervals, say monthly, quarterly or annually, in a mutual fund. By regularly investing small amounts of money (instead of a lump sum) you spread your risk and can ride over short-term volatility.
Based on the mutual fund scheme's objective, your money is invested in equity or other securities.
SIPs work best when used over a longer time frame. That's when the power of compounding works in your favour. Compounding means that you earn returns not only on the principal amount you invested but also on the returns earned.
How to invest via SIP
Investing in a SIP is easy. You can do it online in no time at all through the mutual fund website. However, if you want to invest in multiple mutual funds, the process can be cumbersome and time-consuming.
Now you can invest in a few taps of your smartphone with the digibank mobile app
All you need is a Demat account with the KYC updated.
If you know which mutual fund you want to invest in, you just have to choose the mutual fund scheme, the amount you want to invest, the periodicity of investment and the duration.
Here's how to invest in SIP in five easy steps:
- Download the digibank mobile application on your phone. Or visit the digibank site.
- Log in with your credentials
- Browse through the range of mutual fund options and choose the one you want to invest in
- Specify the initial amount, SIP amount, periodicity and duration.
- Pay using a secure payment link. You can enable auto-debit for you SIPs so that you don't have to remember to invest every month.
If you are getting started on your investment journey, SIPs are ideal. You can begin with investments as low as Rs 500 per month. SIPs instil discipline and allow you to grow your corpus over time easily and methodically. With SIP, you need not worry about timing your investment with the market. In the long run, your losses will average out and gains compounded.
Download the digibank by DBS app to get started with your SIP.