Mutual Funds: How to start SIP? Check this step-by-step guide
The Mutual fund industry's AUM has grown by 6% MoM in April to Rs 25,27,633 crores.
There are several financial tools available which can be opted for investment - fixed deposits, mutual funds, PPF are some of the options available. However, SIP or Systematic Investment Plan is considered as an easily understandable mode of investment which promises good returns to a first-time investor. Additionally, SIP is a very disciplined way of investment and hence is very hassle-free.
According to a report by Narnolia Financial Advisors, for the month of April, SIPs have seen an inflow of Rs 8,238 crores as compared to Rs 8,055 crores a month ago. Additionally, they have also witnessed that the most preferred investment option were the large-cap funds along with large and mid-cap funds have managed to garner in just Rs 28 crore signifying the shift in investment focus. Meanwhile, balanced funds have seen net outflows from the category to the tune of Rs 2,121 crores. Liquid funds have become the new favourite due to the minimal credit risk associated with them and have garnered Rs 89,778 crores.
Narnolia Financial Advisors states that the Mutual fund industry's AUM has grown by 6% MoM in April to Rs 25,27,633 crores.
ICRA's monthly report on mutual funds for the month of April gives that according to Association of Mutual Funds in India (AMFI) AUM of the Indian mutual fund industry came in at Rs. 24.79 lakh crore in April 2019, up 4.17% against Rs. 23.80 lakh crore in March 2019. Also, it grew 6.59% from Rs. 23.26 lakh crore in April 2018.
The report further adds that the mutual fund industry saw net inflows of Rs. 100,460 crore in April 2019 as against net outflows of Rs. 22,357 crore in March 2019. Meanwhile, the investor sentiment was impacted by volatility in stock markets and uncertainty around the outcome of general elections.
To invest through the medium of SIP, one just simply needs to fill in their KYC. Thereafter, the individual needs to register for SIP in a mutual fund scheme of the individual's choice.
- One just needs to visit the link of the said mutual fund scheme
- Look for the link that registers a new account.
- Post filling all your details, you need to come up with a user name and password, to carry out the transactions.
- Provide the details of the bank account from where the SIP payments will be debited.
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