What is a SIP ?
A SIP or Systematic Investment Plan is process of investing your money via monthly payments in Mutual Funds.
What is the minimum of investment ?
You can start from as low as Rs 500 per month and increase as you become more aware. There is no upper limit for a SIP and it all depends on what your monthly savings are like and how much you would like to invest.
Where does my money go ?
After your SIP is initiated, your money is directly debited from your bank account via an ECS Mandate and sent to the Mutual Fund company
How long do I have to invest for ?
You can invest in a SIP for a minimum of 6 months and continue as long as you like. You can also withdraw your money anytime you wish if it’s invested in open ended mutual funds
What are the returns or How much can my money grow ?
If you invest in Equity Funds, you can expect an annual return ranging from 12% to 20% depending on the funds provided you stay invested for a long period of time( > 5 years and upwards).
How do I monitor my portfolio ?
You will receive a login id and password to your online portfolio on our website..
What are the charges for starting a SIP ?
There are no charges for starting your SIPs. We also have an optional and free Guidance Service to help you with guidance and financial planning if you aren’t sure where and how to invest your money.
Are there any recurring costs ?
No, there are no recurring charges. If you need to start additional SIPs, there are no additional charges.
When can I withdraw my money ?
You can withdraw the money anytime you wish. However, in some funds, if you withdraw it before 12- 18 months, there is an exit charge of 1% on the amount you have invested which is levied by the Mutual Fund company. Tax Saving or ELSS funds have a lock in period of 3 years before you can withdraw your money.
Will the money I earn be taxed ?
If you invest in Equity funds, all your earnings after 1 year are tax free. If you invest in Debt Funds, after 3 years you can get indexation benefit which significantly reduces taxes on your earnings.
Why do you need my PAN and Bank Account numbers ?
The Government of India requires that all Mutual Fund investors need to quote a PAN number for making investments.We require your bank account number to get an approval mandate from your bank so that you can make automated monthly investments (also called SIPs) in Mutual Funds. Note: All your investments will be transferred to and from the bank account that you provide online.
Why do I need to send a paper form ? Can’t it be done online?
The Government of India rules require that all investors need to be KYC verified. To do that, we will need physically signed application form from you along with supporting id and address proofs. Note: This is a one time process only and after your verification, all buying and selling of funds will happen online.
How do I know my money is safe and invested with the mutual fund company ?
Good question.You can also visit the CAMS (a third party registrar’s ) website to request an email statement of all your investments as proof that your investments have indeed been made in the desired mutual fund companies.