In today’s world, securing your financial future has become more important than ever. One of the most effective ways to grow your wealth and achieve long-term goals is investing in mutual funds through SIPs (Systematic Investment Plans). The approach is most preferred by investors to stay consistent with their investments and earn high returns. Whether you are planning for a retirement home or saving for your child’s education, investing through SIPs is the most effective and smart way to achieve your aspirations.

In this blog, we’ll learn more about funds and SIPs, the benefits of investing through SIPs, factors you should consider when choosing the right funds and provide you with steps to start SIP investment.

Understanding Mutual Funds and SIPs

Mutual funds are a type of investment where the investor’s money is pooled together to buy different types of securities, including stocks and bonds. The funds are managed by highly experienced professionals who invest them depending on your objectives and risk tolerance.

Systematic Investment Plans (SIPs) are the disciplined approach that allows investors to invest a fixed amount of money in securities at regular intervals, such as monthly, quarterly, or annually, as per your situation.

Benefits of Investing in Mutual Funds through SIPs

Start your investment journey by learning about the benefits of investing through SIPs:

• Budget-Friendly: Anyone can start investing through SIPs with an amount as low as ₹500.

• With consistent investment, you can enjoy the benefits of compounding and earning maximum returns.

• SIPs develop a habit of regular investment and discipline the user to proceed towards a financially secure future.

• You can modify your SIPs by pausing, stopping or changing the frequency per your needs.

Choosing the Best Mutual Funds

To choose the best mutual funds for SIPs, here are the factors that you must consider:

• Define Investment Goals: Know your financial goals, whether you plan to invest for long-term needs or short-term. There are schemes available in the market to cater for the different objectives of the investor.

• Past Performance: Assess the last 5-10 years of the performance of the funds and get an estimation of how it will perform in the future.

• Risk Tolerance: If you can tolerate high risks, then go with an investment in equity funds and if you are planning to play safe, invest in debt securities.

• Use Online Calculator: Make use of an MF calculator to overview the returns of your investments. You can even input different numbers to make an informed decision.

• Time: Consider the tenure of investment that aligns with your financial goals.

Steps to Start SIP Investment

Follow the below steps to start investing through SIPs:

• Set your financial objectives, know whether you want long-term or short-term savings, and choose a trusted and secure platform such as Bajaj Finserv.

• Do your research and assess which mutual fund scheme is best for you on the basis of your goals and risk tolerance.

• Use the online calculator to get an estimate of your returns as per the tenure decided.

• Register and create an account on the platform you have chosen.

• Complete all the details by providing the required information and proceed with submitting the form.

• Keep a regular check on your portfolio, and make sure that you make adjustments accordingly.

Conclusion

Mutual funds are undoubtedly one of the smartest ways to grow wealth and achieve long-term or short-term goals. Bajaj Finserv is a one-stop, trusted digital platform that offers a seamless investing approach where users can manage their portfolios and choose from 1000+ funds’ schemes.

If you haven’t started, it’s time to start your investment journey through SIPs and secure a financially stable future.