Once you apply for one or more SIP plans, the amount is automatically debited from your bank account and invested in the mutual funds you have purchased at the predetermined time interval. At the end of the day, you will be allocated the units of mutual funds depending on the NAV of a mutual fund.
With every investment in a SIP plan in India, additional units are added to your account depending on the market rate. With every investment, the amount being reinvested is larger and so is the return on those investments.
It is at the discretion of the investor to receive the returns at the end of the SIP’s tenure or at a periodic interval.
Let us understand with an example.
Suppose you want to invest in a mutual fund and you have set aside a sum of 1 Lakh Rupees to invest in the same
Now there are two ways in which you can make this investment. Either you can make a one-time payment of Rs 1 Lakh in the mutual fund, also known as lump sum investment. Or you can choose to invest via a Systematic Investment Plan or SIP.
You need to start an SIP of a set amount. Say Rs 500. Then Rs 500 will be deducted from your account and auto-credited to the mutual fund you want to invest in, at a certain fixed date every month. This will continue till the time period
Contact us
Life Insurance that pays out a sum of money either on the death of the insured person or after a set period.
Enquire NowTerm Insurance is the simplest and purest form of life insurance. It provides financial protection to your family at the most affordable rates.
Enquire NowHealth Insurance taken out to cover the cost of medical care.
Enquire NowGeneral Insurance contracts that do not come under the ambit of life insurance are called general insurance.
Enquire Now
Your entire premium is invested into the fund without any deductions. This gives you more returns on your investment.
Your family receives the claim amount in case of your demise during the policy term. So, their future aspirations can be fulfilled.
The Extra Shield Option lets you purchase an additional cover equivalent to the claim amount. Your family gets both these amounts in case of your death by accident.
Choose from multiple investment strategies to achieve your financial goals. Please check Fund or Investment Strategies section for more details.
With 10 fund options and unlimited switches, you can control your investment to take advantage of changing market conditions.