Best SIP Plans – Select the Best Mutual Funds for SIP
Systematic Investment Plan, or SIP as it is commonly known, is a mode of investment offered by Mutual Funds wherein you can invest a certain amount in a mutual fund scheme periodically at fixed intervals. This method is quite popular amongst investors, both new and seasoned, as it helps you to invest in a disciplined manner without worrying about market volatility or the stress of timing the market.
Why SIPs are ideal for mutual fund investing?
Systematic Investment Plans (SIPs) are ideal for developing a strong investing habit, especially if you are investing for the first time and wish to stay invested to achieve your long term goals. You can start an SIP with as small a sum as Rs. 100 and then gradually top them up as your salary increases over time.
The best part about SIPs is that you don’t have to worry about market movements, thanks to rupee cost averaging. The concept of rupee cost averaging is quite simple; you get to buy more units of mutual fund scheme when the NAV (Net Asset Value) is low and fewer units when the NAV is high. Rupee cost averaging, thus, helps average out the cost of these units.
This way you get the maximum value for your investments in volatile markets, and over the long term. This is the power of SIP to build wealth over time.
How Short-Blast SIP helps during market volatility?
While investing in mutual funds, you might encounter short bursts of extreme market volatility in the short term. This may raise doubts in your mind as to how to go about with your current investment plan. Also, staying completely aloof from investing is never a wise option. In such a scenario, Short-Blast SIP may come handy to be on track.
In Short-Blast SIP, you tend to divide your monthly SIPs into further smaller installments. Here, instead of doing a monthly SIP of say Rs 40,000 in one go, you may divide it into 4 smaller weekly investments of Rs 10,000 each. The other way could be to invest say 10-20% every week of the entire month’s investible savings.
The basic ideology behind Short-Blast SIP is to avoid investing in bulk when the markets go haywire. This allows you to spread out your risks systematically till such time the markets normalises. At Paytm Money, you can invest via Short-Blast SIPs with the help of the ‘Multi SIP’ feature and achieve goals in a fast-paced manner.
Best SIP Funds 2020
SIP is a great way to start investing as you can reap the benefits of steady wealth accumulation along with rupee cost averaging. Enlisted here are some of the Best SIP Funds for the year 2020. It is important to note that even the best SIP funds will only render the desired outcome if you stay disciplined and committed to your investment for the duration you had intended to.
How to invest in SIP via Paytm Money?
Investing via SIPs is a smart way to invest regularly without the worry of first accumulating a large sum for investing. The Paytm Money app and Paytm Money website offer only the top-rated funds for you to pick from. Here are a few steps that you need to follow to invest via SIPs:
Step 1: Download the Paytm Money app to complete your KYC & become investment-ready within minutes
Step 2: You can start investing both on our website and App. On the home screen of the App, go to the ‘Invest’ button at the bottom of the page.
Step 3: On the Discover Mutual Funds for Investments page, select from ‘Top Rated Funds’ followed by tapping on ‘View Fund.
Step 4: Select a fund of your choice and ‘Invest Now’ via SIP and enter the amount of investment. Tap on ‘Proceed to Payment’.
Step 5: Make payment using UPI, Netbanking, or by setting an Auto Pay with your bank for automatic deduction of your payments. Tap again on ‘Proceed to Payment’ to complete the transaction.