Systematic Investment Plan, or better recognized as SIP, is an investment route provided by Mutual Funds wherein an investor can invest a definite sum in a Mutual Fund scheme at regular intervals instead of opening a lump-sum investment. The installment amount could be as little as INR 500 a month and carries a similar approach, like a recurring deposit.

SIP investment has been gaining prominence among Indian investors, as it reinforces a disciplined approach in investing without worrying about market volatility and timing the market. It is integral to start early, especially if one is investing in the long-term, as it can help gain maximum returns.

The minimum amount needed to start a Systematic Investment Plan is Rs.500. You can invest 500Rs per month to begin your investment plan and can later customize the amount according to your income if you want to change the amount.
There are several methods to boost investment amounts as you go. In a mutual fund scheme, you can still make additional purchases in the same fund. Mutual Funds are flexible and are a great investment vehicle for today’s generation.
New investors often ask questions on how to invest in sip. There are several mutual fund schemes to choose from, but that should be your least concern. Your priority should be to note your risk-taking ability, your time horizon, and the amount you are willing to invest systematically every month.
SIP can be an excellent investment opportunity for someone who does not have prime knowledge about market movements. One doesn’t have to commit their time evaluating the market moves or choose a proper occasion for investing. With SIP investment, the money usually gets auto-deducted from your bank account and goes straight to your mutual funds. Unlike lump sum investments, it notes that you are working actively towards growing your money. The power of rupee cost averaging is the highlight of investing through a SIP. Because of the consistency for a longer time, rupee cost averaging takes advantage of market volatility. The fixed amount you invest by modes of SIP, it averages out the value of each unit. So, you can purchase more units when the market is low and purchase lesser units when the market is high, reducing your average cost per unit.

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What is KYC?

KYC process is a basic method for an investor to go through when he or she is investing in a Mutual Fund. It is an acronym for ‘Know Your Customer’ and a frequent term generally used for the identification process of a customer. It’s a part of the account opening process.

KYC requires an investor’s identity & address through relevant supporting documents such as PAN card, Aadhar card or address proof, and so on. KYC compliance is mandatory under the Prevention of Money Laundering Act, 2002, and policies constructed by SEBI (Securities and Exchange Board of India) such as Anti Money Laundering and Combating the Financing of Terrorism and Obligations of Securities Market Intermediaries.

Client records are stored and secured in digital form by Central KYC Registry. CKYCR is an entity substantially owned and handled by the Central Government.

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Author's Bio: 

I'm 32 years old Mutual Fund Investor & I love to guide peoples in investing.