SIP or Systematic Investment Plan refers to the practice of investing a constant amount regularly in a Mutual Fund, generally on a fixed date every month. By investing on a fixed schedule, you avoid the complex or even impossible duty of trying to figure out the exact best time to invest.
Key benefits of investing via SIP
Rupee Cost Averaging
SIP allows for averaging investment costs. The fundamental mantra behind rupee cost averaging is ‘you get more units for a lower price’. When markets are down, you get more units of your scheme. When markets high you get fewer units for the same amount. In this way, your average cost per unit in volatile markets turns out to be lower than when you invest in a lump-sum
Start Small with as low as Rs. 500 per month
You can customise your SIP investment based on your financial situation. So, let’s say you start out with a small SIP in line with your income. As your income increases, you can choose to increase your SIP contribution
Builds Financial Discipline
Monthly auto-payments which are debited from your digibank accounts. This also helps you to plan your monthly budget more effectively
Start early & enjoy the power of compounding
The key to building wealth is to start investing early and regularly. A small amount of money invested regularly can grow to a large sum via the power of compounding because the corpus on which you earn returns every year gets augmented by adding the previously accumulated returns
Download the digibank mobile app on your smartphone
Launch the app and sign up for a full digibank Savings Account
Log in and tap “Mutual Funds” in the navigation menu
Follow instructions to complete verification
Frequently Asked Questions
Do all the schemes provide me an option to invest via SIP?
Majority of the schemes that are available over digibank provide an option to invest via SIP, however some of the liquid schemes may not offer this option.
What is the minimum amount needed to start an SIP?
Depending on the fund type you can start investing in a SIP with as low as Rs. 500 per month
Is there a minimum period for which I must make investments through SIP? What is the maximum number of months I can select for my SIP?
Yes, the minimum tenure for SIP investments on digibank is 12 months. Maximum number of months you can choose for your SIP would depend on the scheme you are planning to invest in. However, for most of the schemes we provide SIP till perpetuity.
Are there any charges or penalties for terminating an SIP?
No, there are no charges for SIP termination.
In any scenario, will my SIP be terminated automatically?
In the event where there are 3 consecutive months’ default on your SIP payments, your SIP will be automatically terminated.