When you hear the word “mutual funds”, the first that comes in your mind is SIP (systematic investment plan). Just like how people have given Googling a synonym i.e. web searching, SIP and mutual funds are considered synonyms. But that’s not true! Mutual funds and SIP are different concepts.

Mutual funds are the modern investment category whereas SIP is the method of investing in these funds. Investing in mutual funds involve two methods i.e.

  • One-time payment (payment is processed in one go)
  • Lump-sum payment (payment is processed in installments)

Also known as automated periodic investments, lump-sum transactions are considered the top investment methods for mutual funds investors. In simplest terms, SIP is the automated periodic investment plan where a certain portion of the money is automatically deducted from investors’ accounts weekly, monthly, or quarterly. Let’s learn more about SIP and the reasons you should consider investing through this method.

Reasons You Should Choose SIP to Invest in Mutual Funds

Systematic Investment Plan is, so far, the most reliable investment methods of mutual fund investment. Here’s why:

1. You Get a Control Over Market Volatility

No one can control market volatility as it is completely based on the market condition. However, using the SPI method of investment, one can minimize market volatility conditions.

This is because investing through SPI allows you to balance out your monthly or weekly investment in mutual funds and receive maximum returns.

2. Reduce the Risk of Market Condition

You cannot predict the market conditions. There is no way one can know how the market will move in the future. That said, there is no point in waiting for the right time to make an investment.

When you use the SIP investment method, you balance out your investment in such a way that the market condition will have no impact on your earnings. Let’s say; you have invested in mutual funds when markets are expensive. But as you keep on investing the money regularly, you will get good returns when the market condition fixes. Instead of investing all your money at once, consider investing it in installments and earn good returns at the end of the maturity period.

3. Investors Do Not Need a High Budget to Invest

Another crucial benefit of investing through a Systematic Investment Plan is that you can start your investment for as low as 150rs per month. Now, you no longer need to wait until you earn enough to invest in mutual funds.

Using this smart and effective technique of SIP, anyone can invest in mutual funds. Furthermore, you don’t have to make the payments every month manually. The scheme will automatically deduct the amount from your bank account and transfer it to the mutual fund’s account.

4. Earn Good Returns

Have you ever heard of compound interest? Well, it is often considered the eighth wonder of the world. This is because compound interest is calculated on your returns. This means the investor not only gets to earn on their principal amount but the returns generated during this period. Hence, compounding can add to your overall earnings provided that you are paying in a lump sum.

5. SIP is flexible

Though you have to give a commitment to making a payment every month or week, SIPs are still considered a flexible option. You can increase or decrease the amount you pay through the SIP plan.

For instance, if you have got a promotion, you can increase the amount of investment. In fact, you can stop the Systematic Investment Plan for up to 3 months if you have a cash emergency.

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The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/MD011-40345555admin@gillbroking.com
2 Charanpreet GillWhole Time Director011-40345555gillbroking@gmail.com
3 Charanpreet GillCompliance officer011-40345555compliance@gillbroking.com
4Manpriya GillDesignated Director-1011-40345555manngill04@gmail.com
5Kewal GillDesignated Director-2011-40345555fvwealth@gmail.com

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