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91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds 2 Groww thtsifhnaiianintogin?(tps:fgrowninogin lutm_source=blog-_utm_source=blog-—_(nttps:i/groww. app link/pAByr2PnUO) header-togin) header-register) (https:f/groww.in/) » Blog (flog) » (https://groww.in/blog/category/learn/) Shikhar Singh 11 Aug 2017 There are many misconceptions about SIP. Below are a few questions that aim at addressing your doubts about SIP: 1, What is SIP? 2. Is SIP safe or not? 3. Are SIP returns taxable? 4. Can SIP be stopped? 5. Can SIP save tax? x Invest in Direct Mutual Funds for Free, 6, Can SIP amount be reduced/increased? Join 1.5L+ users now. (httos:igroww.app.link/r8AxuxVAPO) hitpsslgrowwiniboglsip-everything-wanted-xnow! sat 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds 7. Can SIP be started online? 8, Does SIP have a lock in period? 9. Does SIP have exit load? 10. Is SIP better than RO? 11 Is SIP good for long term? 12, Is SIP and mutual fund the same thing? 13, Which SIP to invest? 1. What is SIP? (htips:/igroww ind -ontent/uploads/2017/08/idk-1934218_1920-whatis jpg) SIP stands for Systematic Investment Plan, SIP is an organised way of investing regularly in a mutual fund, Many times we don’t have large amounts of money to invest. When you set up an SIP with any mutual fund, your account is debited a fixed amount every month. This amount is invested in a mutual fund of your choice. Over a period of time, your investments accumulate and keep growing, Invest in Direct Mutual Funds for Free, Join 1.5L+ users now. (httos:igroww.app.link/r8AxuxVAPO) hitps:lgrowwinibloglsip-everything-wanted-xnow! 221 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds Invest In Mutual Funds © Eam higher returns by investing in direct mutual funds © Start investing in less than 2 mins © Its FREE Download App (https://play google. com/store/appsidetalls?id=com.nextbilion.groww) 2. Is SIP safe or not? Invest in Direct Mutual Funds for Free, Join 1.5L+ users now. (httos:igroww.app.link/r8AxuxVAPO) hitps:lgrowminiboglsip-everything-wanted-xnow! 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds (https://oroww in/wp-content/uploads/2017/08/beach-holiday-clouds-fequard-safe.jpg) SIP is a very safe method to invest in mutual funds. If you invest in a mutual fund lump sum, depending on the market condition, you could end up paying a very high price for a mutual fund. To avoid this, you should invest in mutual funds when the markets are not overvalued. This obviously requires a good knowledge of the markets. This is called timing the market, You do not need to worry about timing the market when investing via SIP. In SIP, you invest a small amount of money every month. In some months, the price will be high while in some months, the price will be low. If you consider the long term, the price you pay will be an average of high and low. Thus, you will not pay a high or overvalued price for the mutual if you invest via SIP, This is called rupee cost averaging. sasons-why-sip-is-best/ 3. Are SIP returns taxable? Depends on the type of mutual fund you invest in and when you redeem your investment x Invest in Direct Mutual Funds for Free, Join 1.5L+ users now. (httos:igroww.app.link/r8AxuxVAPO) hitps:lgrowminiboglsip-everything-wanted-xnow! ara arsr2018 13 Things You Need To Know About SIP (Systemat Investment Plans) - Grow - vest In Mutual Funds Retums from equity mutual funds have no tax on them if redeemed after a year of investment. If you redeem before a year, you will have to pay a tax of 15% on your gains. Debt mutual funds, on the other hand, are taxed at a rate of 20% with indexation benefit (https://groww.in/blog/indexation-simplified/)f you redeem after 3 years since investment. If you redeem before 3 years, the tax is based on your income tax slab. Note: Tax in case of SIP is calculated on individual SIP investments. This means the tax will be calculated for each SIP instalment separately. Example: Let's say you have an SIP of (11000 per month starting in January 2017 and lasting till December 2017. Let's assume you have invested in an equity mutual fund. So you won't have to pay any tax if you redeem after 12 months from the investment. So, in order to not pay any tax, you should redeem your investment made in January 2017 after one year, that is, after January 2018. Likewise, the instalment you paid in February 2017 should be redeemed after February 2018 to avoid paying taxes. To.understand the tax on SIP and mutual funds, click here (hitps:/groww.in/blog/tax-on-mutual-funds/). 4. Can SIP be stopped? Invest in Direct Mutual Funds for Free, Join 1.5L (https:llgrovnwin/wp-content/uploads/2017/0B/3ex0ls photo 147288'stop jpea) (httos:igroww.app.link/rAxuxVAPO) hitps:lgrowminiboglsip-everything-wanted-xnow! arsr2018 18 Things You Need To Know About SIP (Systematic Invesiment Plans) - Grown - Invest In Mutual Funds Yes. Unlike fixed deposits (FD) and recurring deposits (RD), you can stop an SIP any time you want. After stopping paying for an SIP plan, you can either choose to redeem your money from the mutual fund or continue to remain invested in the fund, 5. Can SIP save tax? (https:/igroww ind Ifyou use SIP to invest in tax saving ELSS mutual funds, you can save tax too. You can claim tax deductions of up to ‘11.5 lakh under Section 80C (htips://groww.in/blog/section-80c/) by investing in ELSS mutual funds. To take benefit of ELSS mutual funds via SIP, make sure the total of all your SIPs in a financial year is. 21.5 lakhs. Investing more than (1.5 lakh won't give you any additional tax benefit. You can however still invest in an ELSS mutual fund if you feel itis a good investment, Example 1: In the financial year 2017-2018, if you start an SIP of 1112500 starting in April 2017 til March 2018, you will have made an investment totalling “11.6 lakh in the financial year 2017-2018. Thus, you will be eligible for a tax benefit of 11.5 lakh for the financial year 2017-2018, Example 2: In the same example as dbwest tetiraekblutwaldiettsrige Firtead of starting in April 2017, let's say you started in May 2017 — one month late. Thelkit faBtansAtsMgwur SIP would be made in April 2018 which is, not a part of the financial year 2017-20 {uddrg da WAApAARRBAGAKRAEDIO 18, your total investment would hitps:lgrowminiboglsip-everything-wanted-xnow! et 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds only be 11137500. So you would be eligible for a tax benefit of only "137500. ‘To know more about ELSS tax saver mutual funds, click here,_(https://groww.in/blog/understanding-elss-mutual- funds/) 6. Can SIP amount be reduced/increased? (https:/igroww.intwp-content/uploads/2017/08/man-person-technology-music-increase,jpg) The procedure to do so is very complicated. But there is a solution to this problem. You can simply start a new SIP in the same fund with the increased amount. Example: Let's say your SIP is (10000 a month and you want to increase it to 1112000 a month. You can simply start a new SIP with the increased amount in the same mutual fund. Note: Though not very common, some mutual funds stop accepting new SIPs due to various reasons. If your mutual fund is not accepting new SIPs and you cancel your SIP, you wil not be able to start a new SIP inthe * Invest in Direct Mutual Funds for Free. same mutual fund, In such cases, itis advised nat you not cancel ihe existing SIP but start a fresh SIP ina Join 4a" users now. different mutual fund with the extra money that you have. (htps:/igroww.app.link/r8AxuxVAPO) hitpsigrawminibloglsip-everything-wanted-know! nen 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds 7. Can SIP be started online? (htips:/igroww in/wp-content/uploads/2017/08/person-woman-apple-hotel-online.jpg) Yes, you can easily start an SIP online. To start an SIP online using Groww, make sure you have signed up on groww in (http://groww.in). Upload necessary documents (PAN, address proof, and bank statement) and then choose a mutual fund you want to start an SIP in, Go to the mutual fund page on groww.in (http://groww.in) and follow instructions, 8. Does SIP have a lock in period? Invest in Direct Mutual Funds for Free, Join 1.5L+ users now. (hitps:igroww.app.link/r8AxuxVAPO) hitpsigrawminibloglsip-everything-wanted-know! ant 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds (https://groww in/wp-contentluploads/2017/08/door Ifyou are investing in an open-ended mutual fund, there will be no lock-in period for your SIP as well. It completely depends on the mutual fund you invest in, Some mutual funds, do have a lock-in period. ELSS. mutual funds have a lock-in period of 3 years. Many other mutual funds have lock-in periods too. Mutual funds that have lock-in periods are called close-ended mutual funds. ‘To understand the difference between open ended and close ended mutual funds, click here. (hlips:/igroww in/blog/open-ended-vs-close-ended-schemes/) 9. Does SIP have exit load? Invest in Direct Mutual Funds for Free, Join 1.5L+ users now. (htps:!igroww.app.link/r8AxuxVAPO) hitpsigrawminibloglsip-everything-wanted-know! ont 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds (https://groww.in/wp-contentluploads/2017/08/purse-388998_1920-Exit-load.jpg) The exit load of an SIP depends entirely on the mutual fund. If the mutual fund specifies an exit load for a period, then there will be an exit load on the SIP also. Most equity funds have an exit load of 1% if redeemed before a year from investment and no exit oad if redeemed after a year. The exit load is calculated upon the value being redeemed. Example: If there is an exit load of 1% if redeemed before a year from investment, and you are redeeming 100000 before a year, then, the exit load will be 1% of the total redeemed amount. The amount, in this case, will be "1000. In the case of SIPs, each SIP instalment is treated as a separate investment. Example: Let's say you started an SIP in January 2016 lasting till December 2016. This mutual fund, we assume, has an exit load of 1% applicable till a year from investment and no exit load after that. If you choose to redeem the entire amount in April 2017, then you will be charged no exit load on the investments made between January 2016 through April 2017. However, since it wouldn't have been a year since you invested the instalments in and after May 2016, an exit load will be applicable on them. 10. Is SIP better than RD? . Invest in Direct Mutual Funds for Free, Join 1.5L+ users now. (https:igroww.app.link/r8AxuxVAPO) hitps:lgrowminiboglsip-everything-wanted-xnow! so 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds (https://groww in/wp-contentVuploads/2017/08/horizontal-1155878_1920-Better jpg) SIP has the capability to give much higher retums than RD. The return you get on your SIP depends on the mutual fund you invest in. There are debt mutual funds that are considered low risk and then there are equity mutual funds that are considered high risk, Unlike RD, the rate of return isn't fixed in case of mutual funds. Debt funds usually give much better retums when compared to RD and are considered low risk too. If you can take more risk, you should try setting up and SIP in higher risk equity mutual funds. Here is a portfolio of low-risk mutual funds._(https://groww.in/portfolios/ashwin-low-risk-debt-portfolio) 11. Is SIP good for long term? Invest in Direct Mutual Funds for Free, Join 1.5L+ users now. (htps:!igroww.app.link/r8AxuxVAPO) hitpsigrawminibloglsip-everything-wanted-know! st 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds (https://groww.in/wp-content/uploads/2017/08/coins-1523383_1920-long-term.jpg) Yes. In fact, itis better to invest in SIP for the long term. instead of waiting and accumulating money to invest, you start investing whatever amount you are able to save. This way, your money is always invested. Not just that, by investing for the long-term, you are ensuring that short-term market volatility does not affect your investment. Learn which is better for you: lump sum investment or SIP investment (https:/groww.in/blog/si how-should-you-invest/) 12. Is SIP and mutual fund the same thing? Invest in Direct Mutual Funds for Free, Join 1.5L+ users now. (htps:!igroww.app.link/r8AxuxVAPO) hitpsigrawminibloglsip-everything-wanted-know! son 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds (https://groww.in/wp-content/uploads/2017/08/oranges-2087113_1920 jpg) SIP is a method used to invest in mutual funds. You can invest in mutual funds in two ways: lump sum and SIP. When you invest lump sum, you put in a large amount of money in a mutual fund in one go. In SIP, you invest smaller amounts of money on a regular basis ~ usually every month. Lear all you need to know about SIPs here. _(https://groww.in/blog/sip-systematic-investment-plan-2/) 13. Which SIP to invest? Invest in Direct Mutual Funds for Free, Join 1.5L+ users now. (hitps:igroww.app.link/r8AxuxVAPO) hitpsigrawminibloglsip-everything-wanted-know! sa 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds (https://groww inwp-contentiuploads/2017/08/gir-2573111_1920-choice jpg) Which SIP you invest in depends on your needs. If you are willing to take risks, you can check out small and mid cap mutual funds. On the other hand, if you want moderate risk, you can check out large cap mutual funds. You can also check out debt mutual funds if you want to be exposed to very low risk Check out the 10 most recommended funds for SIP in 2018 here. (https://groww.in/blogitop-10-si invest-india-2018/) Choosing to invest via SIP is a good start to investing in mutual funds not only for new investors but also for experienced investors. Make sure to research carefully before investing. You can use this helpful SIP calculator to plan your SIPs. (https://groww.in/sip-calculator!) Click here to download a shorter version of this article so you can share with your friends, (https://groww.in/wp= contentluploads/2017/08/SIP-Everything-You-Wanted-to-Know-Groww pdf) Happy investing! (nttps:/api wnatsapp. cont 4S4i" Ditect Mutual Funds for Free, Join 1.5L+ users now. text=13+Thingst Yout Need tTat Knaus Abouts StR49% 28S ystamatictinvesiment+Plans%29+htfps 430% hitps:lgrowminiboglsip-everything-wanted-xnow! swe 91372018 +3 Things You Need To Know About SIP (Systematc Investment Plans) - Grow - Invest In Mutual Funds everything- Related articles know%2F) Impact of Budget 2018 on Mutual Funds and EquitpMStkmétd One Select A Mutual Fund PortfolioHow To (https://groww.in/blog/impact-budget-2018-mutual-futttspedighp\ww.in/blog/select-mutual-fund-portfolio/) (https:ligre Kisan Vikas Patra lam a 24 year old earning 80k per month after taxes. My monthly needs can be fulfilled under 16- Is this ¢ 418k. What is the best way to invest? month? 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(hitps:igroww.app.link/r8AxuxVAPO) hitpsigrawminibloglsip-everything-wanted-know! so arsr2018 13 Things You Need To Know About SIP (Systemat Investment Plans) - Grow - vest In Mutual Funds Groww is an investing platform where users can find the best mutual funds to invest in and can invest their money without any hassles. Groww provides objective evaluation of mutual funds and does not advice or recommend any mutual fund or portfolios. Investor shall invest with their own descretion. Groww does not guarantee any returns and safety of capital. Groww helps investors in the following way By providing objective evaluation of products available on Groww By bringing up red flags, if any, involved in the products. However Groww does not guarantee to bring out all red flags By being transparent about fees and charges involved in investing in a product By clearly representing the risk associated with buying a product SECURE TRANSACTIONS ON GROWW All transactions on Groww are safe and secure, Users can invest through SIP or Lumpsum using Netbanking through all supported banks. It uses BSE Star MF (with Member code 11724) as transaction platform. MUTUAL FUNDS SAHI HAI Mutual fund investments are very popular with individual investors because of the benefits they provide. Among the many advantages, the most important factors that drive investors to mutual funds are that Investors can - Start with any amount (as low as 500) - Diversify across multiple stocks and other instruments like debt, gold etc. - Start automated monthly investments (SIP) - Invest without requiring to open DMAT account All type of mutual funds are available on Groww, INVESTING IN MUTUAL FUND PORTFOLIOS Portfolio is collection of mutual funds designed to meet your investment goals. Investing in mutual fund portfolios helps you in diversifying your investments and reduces the risk. Portfolios also help you in assigning an investment goals and make it easy for you to save for and achieve your goals. You can create a portfolio yourself or ask an expert to build it for you. DISCLAIMER Invest in Direct Mutual Funds for Free. NextBillion Technology Private Limited (with A\RN-41148%rthitpsi!/aroww.in/bloglan-111686/)) and Finvantage Investment Adviser Private Limited (IMAZAgARAR. (hiRRiSKaUaNAeRsjertificate-of-registration-for-investment- hitps:lgrowminiboglsip-everything-wanted-xnow! 2021 arsr2018 13 Things You Need To Know About SIP (Systemat Investment Plans) - Grow - vest In Mutual Funds adviser/)) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Unless otherwise specified, all return figure shown above are for illustrative Purposes only, Actual returns will vary greatly and depends on personal and market circumstances, The information provided by our blog is educational only and is not investment or tax advice. NextBillion Technology Private Limited and Finvantage Investment Adviser Private Limited does not endorse views given or portfolio designed by third parties on the website, and these are their independent opinion on the scheme or performance of the schemes. Terms and conditions of the websitelapp are applicable. Privacy policy of the website are applicable. Prevent unauthorised transactions in your account. Receive information of your transactions directly to your mobile/email. Issued in the interest of investors, KYC is one time exercise while dealing in Mutual Funds - once KYC is done you need not undergo the same process again when you approach another Mutual Fund (https:/Awww.mcafeesecure.com/verify?host=groww.in) Invest in Direct Mutual Funds for Free, Join 1.5L+ users now. (httos:igroww.app.link/r8AxuxVAPO) hitps:lgrowminiboglsip-everything-wanted-xnow! zat

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