Today we are going to tell how more funds can be created through SIP? Also, how can the risk of market volatility be reduced in SIP?
mutual fund house selection
Before doing SIP, you should choose a good mutual fund house. Like Nippon India Mutual Fund, HDFC Mutual Fund, Axis Mutual Fund, UTI Mutual Fund etc. After you have selected your preferred fund house, the second number comes after choosing good mutual funds.
Choosing a good mutual fund
There are many schemes in mutual funds. You can visit the site of any mutual fund house to see the list of schemes operated by it. It would be better to choose four or five schemes out of them. The four or five schemes that you are choosing should be a direct growth plan. Now look at the track record of all the schemes one by one. What is the % return given by this fund in the last five years? Then what is the return given in 10 years? If it is old then study the returns for 15 years and up to 20 years. Start an online SIP in the fund which you like.
Online SIP
When you start an online SIP, the amount decided by you is deducted every month from your account on a fixed date.
folio number
When your SIP is opened, a folio number is given to you by the mutual fund company. All the information related to your investment is available in this folio number. Folio number is a special number given by the mutual fund house. Whenever you go to your folio number, you get all the information related to your investments. Like how much is your invested amount? What is the current value? What is the NAV? What are the total units? What is the percentage of loss/gain? Your investment account is the same folio number as a bank account.
Advantages of Folio Numbers
You can keep your investments under your own control with a folio number. Any work you want to do can be done by yourself by going to your folio number. You can download the mutual fund app of any fund house you invest in.
Let's know what are the benefits of folio number
Benefit number 1
get statement
You can see the statement of the money deposited through SIP. For this, you have to open the app or website and go to your folio number. On clicking on the statement option, you will get five options.
0. Last financial year
0. Current financial year
0. Last six months
0. Last twelve months
0. Select custom date range
Tick any one and submit. Statement will come to your mail.
Benefit number 2
to invest
If you want to do extra purchasing in your SIP, then you can do it by going to the transaction option. By clicking on the transaction, you will have to tick the growth plan growth option. On clicking Proceed, Systematic Investment Plan and Lumpsum Investment will come up. After ticking the lumpsum, you have to click on next. Now the Lamsum amount will come. Enter the amount you want to enter and click on next. Then the bank details will come. There you can do extra purchasing by doing transactions from Netbanking or UPI.
Benefit number 3
to switch
You can switch from the current plan by going to the switch option. You can invest the same money in any other plan.
to withdraw
By going to the Withdraw option, you can redeem your entire money or as much money as you want. The redeemed money gets credited to your account.
SWP plan
Like SIP, you can also take SWP plan from your folio number. SWP is called Systematic Withdrawal Plan. This plan is done for regular income. People use it as a pension. SWP can be done after building a large corpus from SIP. You can do SWP to withdraw a fixed amount every month. Your money increases or decreases according to the fund value. Also, every month a fixed amount keeps coming into your account. In the long term from SWP, it is also possible that you can earn a monthly income and your principal amount also keeps increasing. It depends on the performance of the fund.
Different SIPs in the same folio number
To improve the performance of SIP, two or three different SIPs should be done. This also reduces the risk of SIP. If the performance of any one SIP becomes good, then a big fund gets ready. For doing different SIPs, different plans should be taken in the same fund house. The folio number should also be kept the same. For example one small cap plan, one mid cap plan one large cap plan etc in the same folio number. When you take a plan in this way, you can track your plan from a single app. Lassum can be purchased. No need for another app.
Now I understand that you should not have any problem in taking any direct SIP plan. The benefits of taking different plans on the same folio number must also be understood. Also, it would have been understandable to manage your plan from the folio number.
(This post has been written for information only. Make any investment only after consulting your financial advisor.)
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