Know About SIP Investments

SIP Investments | Image Resource : freepik.com

Saving in FDs and traditional instruments is not enough to make you reach your goals. You need to invest if you want to fulfill your goals like owning a house or kids education or kids marriage or retirement.

You can invest in mutual funds to reach your goals. Systematic Investment Plan (SIP) allows you to invest a fixed sum of money regularly in mutual funds. To invest in mutual funds through SIP you should identify your financial goal. You should then invest regularly to reach your goals.

You should also consider your risk taking ability. You have to decide for what  time period you want to invest for. Once you have decide all these points you should find mutual funds that suit your requirements. You should invest in the funds that suit your risk appetite and help you reach your goals. The objective of your SIP investments should match that of the funds you invest in.

Kotak Mutual Funds allows goal based investment planning. It allows you to invest depending on your investment time frame. You have to define your goals and select the mutual fund products for your investments.

There are option available to increase your SIP value that you invest regularly once you start SIP.

SIP Booster facility

This facility is allows you to increase your SIP installment amount at predefined intervals. You can begin your SIP with a small amount and increase the amount later on. This facility gives you the investment flexibility for the entire tenure of SIP. You can use this facility to boost your investments. As your income grows you can increase your investments. You can register for this facility and later give the instructions to increase the SIP installment amount at an interval of 6 months or 1 year.

* There are many benefits of this facility. They are as follows:
* Increase your investment even without realising it.
* Manage your income to investment ratio better.
* Earn better returns on your investments.

Flex SIP

You can increase the SIP amount that you invest regularly. Flex SIP allows you to automatically invest regular SIP when the market is high and an amount higher to the regular SIP when the market is low. You invest regularly but the amount to be invested depends on the price-to-earning (P/E) ratio.

Kotak Mutual Funds offer both these options in SIP. You have to register for the SIP Booster facility when you register for SIP.