Many people wants to create wealth and let their money work for them but they fail to do so, because they lack financial education.
Still many work out and find a way to invest in mutual funds for wealth creation. Yet, they get confused while making decision on what is the best way to invest in mutual funds. Here is the..
Best Way To Invest In Mutual Funds
Systematic Investment Plan
Yes, SIP are the way to go! SIP is a term used for regular monthly, and fixed investment of a specific amount into a mutual fund scheme.
SIP has been derived from the Rupee Cost Averaging. SIP takes away the pain of timing the market. Getting In and Out of the Stock Market looks great but it’s nearly impossible.
Regularly Investing in your chosen mutual fund scheme through SIP is one the best way to play the game and create a wealth in long term without caring about the market cycles.
In fact, Ben Graham, the father of Value Investing, in his masterpiece 1955 interview “How to Handle Your Money”, suggested that Dollar Cost Averaging – or SIP – is the “soundest and most simple plan” when it comes to a small investor growing his money. He also suggests that you should start SIPs whenever you want, but as early as possible.
This is because the benefits of SIP investments are seen over a long term period – 10 or more years.
Now, what are you waiting for? Go, SIP!
How To START A SIP?
To start a SIP in mutual funds scheme you need to register for SIP with that particular scheme and authorize the AMC (Asset Management Company) with NACH Form in which your bank account details are filled and further that form is sent to your bank which accepts the authorization and will allow the regular amount to be debited at the particular period.
In this way, that amount will be automatically debited from your bank account and will be invested in that particular mutual fund scheme. You don’t need to do anything else to initiate an SIP.
Learn About Other Financial Terminologies:
- The Benefits of Mutual Funds Investing
- Mutual Fund Schemes and Asset Class
- 8 Types of Equity Mutual Funds In India
- 5 Types of Debt Mutual Funds In India
- What are Economic Indicators?
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