[2023] *Do You know Top 10 Hacks How to start investing in SIP | सिप में निवेश कैसे शुरू करें

How to start investing in sip: SIP or Systematic Investment Plan is becoming more and more popular investment opportunity among beginners. But, problem is that most of the people do not know ‘How to start investing in SIP in mutual fund‘.

Not only just that. If anyone doesn’t have even basic knowledge about ‘What does investment mean?’ or ‘Where to start safest investing without financial knowledge’, that person start his/her investment journey with SIP (Systematic investment plan).

You will also like ‘Top 10 Benefits to open a free demat account in 2022‘

And It’s guaranteed if you read this post completely, You will become a master in investing, researching Mutual Fund SIPs.

Now the main point is that How to start and where to start. But before that everyone should know

1. What is mutual fund?
2. How does mutual fund work?

What is Mutual Fund? How to start investing in SIP

The concept of mutual funds is not a little subject. So, a beginner should know only that portion of mutual fund which helps him/her start investing.

Mutual Fund is a fund that maintained by an ‘Asset Management Company’. AMCs raise funds from public and invest that fund in ‘Stock market’.

After a certain period of time, AMCs sell stocks/shares in higher prices/in bull market and give up to +90% return to investors.

Anyone can start investing in mutual funds via

1. Free Broker App or Website
2. PhonePe App
3. Google Pay app
4. Banks’ App

More we discuss in the later part of this very post. So, keep reading.

How does mutual fund work?

An Asset Management Company launch mutual funds. And raise money from public/investors by issuing NFO (New Fund Offering). and invest them in those stocks which are undervalued or wealth creating penny, mid cap or large cap stocks.

And after 1 year, 2 year, 3 year, and more time, they sell those stocks in higher price than their cost price and return up to 90% to their investors.

Mutual Funds are safer investment plans specially for beginners who do not have any knowledge about stock market or don’t want to take risk of stock market.

There are a lot of benefits of SIP in Mutual Fund Investment

Types of Mutual Funds

1. Debt Funds
2. Equity Funds

Now it’s time to learn Top 10 very very Important points on ‘How to Start Investing in SIP

Before go ahead, a beginner should do some research on these 10 points.

1. Goal-Why do you choose MF?
2. How much risk you can bear
3. Would you like to track your own invested amount?
4. What is the best time to start SIP?
5. How much monthly amount will you invest?
6. Which date of a month is better?
7. Best Asset management company
8. Top mobile apps
9. Passive Index Funds vs Direct Mutual Funds
10. How many SIPs should you keep in your portfolio?

Bonus Point- How much risk can you bear?

#1 Goal

A serious person, keeping a future goal in mind, usually start investing. Goal may be anything:

1. Buying a car after 2 or 3 years
2. Buying a new house after 5 years
3. Retirement Planning
4. Asset Creation
5. Growing ideal money
6. Perk ideal money
7. For Studies of children
8. For marrying of children
9. Avoid stock market risk
10. Generate Passive Income
11. Learn Investment
12. Habit of Saving

People start investing in MFs for many reasons. And reasons to reasons, goals to goals, Mutual Fund Systematic Investment Plan should be different.

Example- if your goal is to buy a new car after 2 or 3 years, you should go for ‘Debt Mutual Fund’ because equity mutual funds market remains very volatile as equity fund’s amount get invested in equity market.

Though Debt Funds don’t give so high return as equity funds, your capital remains safer and you will get stable return.

How to Select Mutual Fund!

In one sentence, for < 3 years duration, it is the best choice to invest in ‘Debt Funds’.

Types of Debt Funds

There are 10 types of Debt Funds available for investors to get stable return

1. Overnight Debt Fund. Duration: for a day
2. Ultra Short Debt Mutual Funds. Duration: for 3 to 6 months
3. Short Duration Debt Mutual Funds. Duration: for 6 months to 3 years
4. Medium to Long term Mutual Funds. Duration: less than 5 years
5. Corporate Bonds
6. Gilt Funds. Investment in Government bonds
7. Credit Risk.
8. Floater Debt Funds.
9. Funds of Funds
10. Bank and PSU bonds

Here in Debt Funds, an investor gets 7 to 10% return according to duration. Debt fund is very suitable for those who expect higher return than Bank FDs, don’t take capital risk.

And all the types of Debt Mutual funds seen above can be explored in Finity App.

So, What have you learnt?

1. For shorter period of SIP investment, Debt funds are recommended by experts.
2. Debt funds are those funds in which Capital is safer than Equity Funds.
3. Debt Funds markets are less volatile than equity market

Who should start investing in Debt Funds

• Those who above 35 years of age
• Retired Persons
• Beginners
• Those who don’t have much knowledge of investing
• Those who invest for short periods
• Those who want higher return than Bank FDs but want to safe Capital from market volatility

How to Research Yourself

• Download ‘Finity App‘ from Google Playstore
• Register
• You will find all types of Mutual Funds in one place

How to start investing in SIP in the best Debt Funds

Follow only a few steps and you can start investing in MF SIP

STEP-1 Download Finity App

STEP-2 After register, Open your app. Scroll Home Page

STEP-3 Select DEBT FUNDS

STEP-4 Explore Suitable Debt Fund and Click On ‘INVEST‘ button

STEP-5 ENTER AMOUNT FOR MONTHLY SIP OR LUMPSUM FOR 1ST TIME. You will see how much amount you will get in return after a certain period of time

STEP-6 SELECT DATE OF SIP.

STEP-7 In Payment Page You will see Bank Account Details and multiple Payment Options. Choose one of them

And in this way you can successfully start investing in SIP (Systematic Investment Plan) in Debt funds very easily.

#2 How much risk You Can Bear

There is a saying “Where there is risk, there is Love”. If you are between 20 and 30, you should definitely take risk.

After making a goal, which point is more important is How much risk can you take/bear?

And in that case small cap equity mutual fund sip is one of the best investment option for you.

See. when you invest your money in debt mutual funds, though return is less, your capital is safe. But when you look for high return, you must have capacity to take risk.

And now if you are between 20 and 30, you must take risk and start SIP in equity mutual funds because, though there is a market risk, return of equity mutual funds are much more higher than debt funds.

And after a certain period of time, risk gets less. equity mutual funds investment is better if you want to continue your SIP for more than 3 years.

Remember: Mutual Fund Investment is subject to stock market risk if you invest in equity mutual funds.

Types of Equity Mutual Funds

There are 6 types of Equity Mutual Funds available in the market to start investing

1. Large Cap
2. Multi Cap
3. Mid Cap
4. Small Cap
5. International
6. Thematic Cap
7. Dividend Yield
8. ELSS-Tax Savings
9. Index
10. Value
11. Gold

What is the best time to start investing in SIP in equity Mutual Funds

Almost each and every equity mutual fund asset management company invests their corpus in Equity Market, that means in Stock market.

So, here, in the matter of Equity Mutual Fund, A beginner should follow a few strategies. Let’s look those strategies.

• Start Investing when Nifty goes down below 6 to 10%
• There is a correction in SENSEX
• Large cap stocks are traded near 52 weeks low price

And this is the right time to start investment in either stocks or mutual funds, when everyone is scared of share market crash.

One more tip, you should keep in mind, whenever stock market corrects, Bear market starts the price of sip units goes down. And the price of small cap mutual funds drastically falls. And a few efficient investors wait for this time.

So, when there is a bear market is stocks, investing opportunity opens.

Previously We saw, The Small Cap Funds are more risky than large or mid cap funds. But it is also true that within a few months when market recovers and again bull runs in share market, Small Cap Funds provide returns many more times than Large Cap Funds.

But obviously there is a risk prevails in Small Cap Funds.

Keep these points before start investing in equity funds

• You Must bear capital risk
• When any correction in share market, choose Small cap funds for much more return
• Do not invest while bull runs in equity share market
• If you are a beginner, start with Rs. 500 in SIP
• Choose Equity SIP, if you can continue your investment for more than 3 years

How to start investing in SIP in Equity Mutual Funds

Same steps to follow as Debit Funds investment

• Download Finity App from Google Playstore
• Register with required information
• Open Home Page
• Click On Mutual Fund
• Click on Equity Mutual Fund
• Explore Funds
• Select and click on INVEST
• Select amount
• Select Date
• Choose payment option

# Would you like to track your invested SIP

If you start investing through/via any online platform, you can track very easily by your mobile phone.

Best Online Platforms/Apps are

• INDMoney
• Finity
• Groww
• UPSTOX
• Phone pe
• Banking Apps

# What is the best time to start a SIP

In a good and favorable time you should start investing

Avishek Das

I am a personal finance, stock market update, etc.-related blog post writer. Besides, I am a stock market trader. I invest in IPOs, stocks, Etc. I publish valuable posts and information here.