Systematic Investment Plan

[justsayraj]

Re: Sip

Open a bank account. Download mutual fund applications from their respective sites, fill and submit directly with mutual fund companies.
All the mutual fund companies provide SIP option.

 

[rckaushal]

Re: Sip

The simple bank account will be able to do this investment via SIP? I mean do I need only a saving account for making SIP?
Please advise. Thanks

 

[justsayraj]

Re: Sip

The simple bank account will be able to do this investment via SIP? I mean do I need only a saving account for making SIP?
Please advise. Thanks

If you want to invest directly with AMC you just need a savings account irrespective of whether you want to invest via SIP or one-off purchase.

If you are not interested in dealing with multiple AMC's on your own, open a savings account and also provide them your PAN details and request for investment account detailing that you want to invest in mutual funds. Once your investment account is opened you can start investing through that account.

Big difference is whenever you make one-off purchases, in case of direct purchases with AMC no entry load is charged; in case of purchases through your investment account with any bank you will be charged entry load. This entry load varies from fund to fund. Majority of funds charge 2.25%.

2.25% makes a big difference.

Call is yours. Convenience or entry load ?

For SIP's some funds charge entry load irrespective of whether you invest directly or through broker (the bank acts as a broker) and some may not. AMC's keep changing these rules, keep an eye on the updates.

Happy investing.

Raj

 

[rckaushal]

Re: Sip

Dear Shri Raj,

I still did not get the clear idea. What is investment account?

Actually, I want to invest via sip in Reliance MFs etc. I have only saving account in Axis, ICICI and Syndicate Bank. I have internet banking access to above banks.

I am presently away in remote areas and cannot realy go to some brokers for help/advice. Grateful for your valued answer.

Thanx in advance

Kaushal

 

[justsayraj]

Re: Sip

Dear Shri Raj,

I still did not get the clear idea. What is investment account?

Actually, I want to invest via sip in Reliance MFs etc. I have only saving account in Axis, ICICI and Syndicate Bank. I have internet banking access to above banks.

I am presently away in remote areas and cannot realy go to some brokers for help/advice. Grateful for your valued answer.

Thanx in advance

Kaushal

Contact ICICI bank and give them your PAN details requesting that you want to invest in mutual funds. That should be it.

Investment accout is just another account like savings account, through which you can invest in mutual funds.

ICICI bank may call it some thing else.

If you contact ICICI as I mentioned in the first couple of lines, they should do the needfull.

Happy Investing.

Raj

 

[contact_rao]

Investing in MFs through SIP..!

Hi experts,

I am 31yrs old and planning to start investing in MFs through SIPs for
next 15-20yrs to generate a corpus of 2Cr for my retirement.
I have a few questions. Please help me in with this

1) Is it safe to start investing in MFs through SIP at this time when the market is heading to the floor?
2) Is there a general criteria which i must use while selecting the MFs? Any thumb rules?
3) What amount should i start with initially? and how much should i invest so that i achieve my target?

Thanks,
Rao

 

[rckaushal]

Re: Investing in MFs through SIP..!

Dear Sirs,

I also want to invest in MFs through SIP.

Could you please throw some light how to start the SIP. I have saving account in ICICI and AXIS Bank. Is saving account enough for making this SIP or do I need another account.

If I want to apply online what type of account do I need to have?

Thanx for expert advices.

 

[life2007]

Re: Investing in MFs through SIP..!

Hello Rao,

[Vicky and other experts are going to be happy, because I am now sharing some part of their responsibility. Truly the proverb goes true... What you give is what you get.... I got lot of wisdom from these guys, therefore, I am attempting to throw some light to others]


Seems you are totally newbie like me. First of all Congrats, you have come to a right place. There is wealth of information. I strongly suggest to study every post here periodically. This itself will make you strong and confident about the basics.

Apart from the above, others will definitely give you advice. You need to be paitent. I am not in a position to calculate how much you need to invest per month to generate 2 crores on your retirement.

However, I can solve some of your queries listed. Yes! do not wait for the markets to go down further. It is indeed a golden period for new investors, investing for longer periods. The golden rule is NOT to time the market which is practically impossible even to greatest stock investor expert Warren Buffett. And do not put all the money at one go. Divide you investment amount in bits and parts and spread among 4 to 5 good funds. Now, before you ask me advice on and invest blindly my pick of 4 to 5 funds, please go through this forum in detail and get used to various common parameters such as large cap, mid cap, small cap, diversified funds, thematic funds, SIP, lumpsum, Risk ratio etc etc.... You will soon find where you can invest. Then you can post here about the funds you intend to invest in.. I am sure many others will give their opinion Also visit valueresearchonline.com for more information about good funds.

Hope this helps.

Thanks

Jeet

Hi experts,

I am 31yrs old and planning to start investing in MFs through SIPs for
next 15-20yrs to generate a corpus of 2Cr for my retirement.
I have a few questions. Please help me in with this

1) Is it safe to start investing in MFs through SIP at this time when the market is heading to the floor?
2) Is there a general criteria which i must use while selecting the MFs? Any thumb rules?
3) What amount should i start with initially? and how much should i invest so that i achieve my target?

Thanks,
Rao

 

[life2007]

Re: Investing in MFs through SIP..!

Hi.. rckaushal!

Congrats on your decision to invest in MFs...

SIP is simply nothing but Systematic Investment Plan. It is always advisable to invest through SIP (that is in small parts of money than huge lumpsum at one go) simply because you cannot time the market. Periodical investment will help you in cost averaging.

Yes! A saving account in ICICI or Axis is enough provided there is enough money to be withdrawed by the MF company

You need to visit CAMS (investor point for various MF companies) for application forms. The filling of first form would take some time to understand but after that it is simpy copy.. takes about just 4 - 5 minutes for me. Always keep photocopy of the application you made to a particular MF so that next time you can simply copy and make only changes of DD No or Amount. By directly applying through CAMS and mentioning DIRECT in the distributor code, you will save yourself lots of entry loads.

You can also go through online method through ICICI. They have facility to trade online through internet banking. How comfortable it is, I cannot comment, since I am not using....

Also please read above, what I have 'preached' Rao. It applies for you as well

All the Best...

Thanks

Jeet

Dear Sirs,

I also want to invest in MFs through SIP.

Could you please throw some light how to start the SIP. I have saving account in ICICI and AXIS Bank. Is saving account enough for making this SIP or do I need another account.

If I want to apply online what type of account do I need to have?

Thanx for expert advices.

 

[mrindia]

Re: Investing in MFs through SIP..!

WISH ALL OF YOU A VERY HAPPY DIWALI & A PROSPEROUS TIME AHEAD!
Hello Jeet!
Nice tips here. I want to add; especially for ppl who live in small cities, do not have CAMS office in their town, but still wish to invest in MFs 'DIRECTLY'

You need to visit CAMS (investor point for various MF companies) for application forms. The filling of first form would take some time to understand but after that it is simpy copy.

Application forms of all funds can be downloaded from respective AMCs website. You can complete the form, attach DD/ Cheque (preferably 'payable at par') & PAN-copy (for the first time in CAMS) & send the things by post/courier to nearest CAMS office. SIP forms will require additional ECS Mandate.
Only difference is that you will get NAV of the day when your post reaches CAMS.

mr india