A systematic investment plans (SIP) is an orderly method of investing in mutual funds. It provides investors with a disciplined and convenient means to gradually build wealth, leveraging the benefits of rupee cost averaging and the power of compounding over time.

So, what exactly is a SIP? It stands for “Systematic Investment Plans,” wherein an investor commits to investing a fixed amount of money at regular intervals, usually monthly or quarterly, into mutual fund schemes.

This investment option is particularly suitable for individuals with diverse financial objectives, like wealth accumulation, retirement planning, or funding educational expenses. Importantly, it offers flexibility to adjust to evolving financial situations, ensuring that investors can stay on track towards their goals despite changes in circumstances.

Investing in mutual funds through a systematic investment plans (SIP) offers flexibility. One can start a SIP investment with instalment amounts as low as ₹500 per month. Similar to a recurring deposit, SIP allows you to invest a fixed amount regularly, lessening the burden of market volatility and timing.

Investors to invest in SIP need to set up standing instructions to debit their bank accounts on the date of SIP as per the frequency decided. Thus, eliminating the need to write cheques each time while investing in the SIP. This hassle-free approach has made SIP increasingly popular among Indian mutual fund investors.

One of the biggest advantages of SIP is its ability to leverage rupee cost averaging, allowing investors to benefit from market fluctuations over time. By committing to invest a fixed sum for a predetermined period, regardless of market conditions, SIP instils discipline and fosters a long-term investment mindset.

While the market may fluctuate unpredictably, SIP provides a straightforward strategy for investors to stay focused on their financial goals and navigate market complexities with confidence. It’s a simple yet powerful approach to building wealth gradually and steadily over the long term.

How SIPs work?

Understanding how SIPs work is crucial before embarking on your investment journey. Here’s a breakdown of the four key stages involved in investing through SIP:

Selecting a mutual fund scheme:
Select a mutual fund scheme that aligns with your financial goals and risk tolerance. If you need assistance making this decision, you can contact our financial experts, we will help you make a well-informed decision regarding your investments.
Choosing the investment frequency:
Next, determine the frequency at which you wish to invest. While monthly investments are common, you have the flexibility to choose from various options like weekly, quarterly, semi-annually, or annually, depending on your preferences and financial situation.
Setting up SIP with a mutual fund scheme:
Setting up your SIP is straightforward once you’ve decided on the mutual fund scheme and investment frequency. Our financial advisors will help you set up a SIP as per your requirements in the mutual fund of your choice. You will be required to complete your KYC if you’re a first-time investor.
Automatic amount debit and unit allotment based on NAV:
After setting up your SIP, money will be automatically debited from your registered bank account based on the chosen frequency. Each debit corresponds to the date you selected during setup. This process is automated for convenience. You’ll receive acknowledgement of your investment, including the number of units allotted based on the net asset value (NAV), which may vary for each contribution due to daily NAV fluctuations.
By understanding these stages, you can confidently navigate the SIP investment process and work towards achieving your financial objectives effectively.

What are the benefits of investing in SIP?

Investing in mutual funds through a Systematic Investment Plan (SIP) offers a plethora of benefits that can help investors achieve their financial goals effectively. Here are some key advantages of SIP:

Rupee Cost Averaging:
One of the significant benefits of SIP is its implementation of Rupee Cost Averaging. This strategy enables investors to acquire more units when the Net Asset Value (NAV) of a fund is lower and fewer units when it’s higher. By doing so, SIP ensures that the overall cost of purchasing mutual fund units even out throughout the SIP tenure. This approach eliminates the necessity to predict market movements or time the market effectively, offering investors a consistent and disciplined investment approach.
Power of Compounding:
Regular investments through SIP facilitate the power of compounding, a phenomenon where returns are reinvested to generate additional earnings. This compounding effect snowballs over time, exponentially multiplying potential returns. By starting early and maintaining consistent investments through SIP, investors can harness the full potential of compounding, thereby bolstering long-term wealth creation endeavours.
Flexible Investment Amount:
SIP provides investors with the flexibility to commence investing with amounts as low as Rs 500 per month, making it an accessible option for investors of varied financial capacities. Furthermore, investors have the liberty to increase their monthly investments gradually as their earnings increase, leveraging the SIP step-up feature. Moreover, there are no constraints on the number of SIPs or mutual funds one can invest in concurrently, facilitating the building of diversified investment portfolios tailored to individual preferences and objectives.
Convenient Investment Method:
SIP streamlines the investment process by removing the requirement for exhaustive market research and analysis. Investments are executed automatically based on standing instructions to the bank. Once investors have chosen suitable funds, monthly SIP deductions occur seamlessly, ensuring consistent investment without the hassle of manual intervention, thereby minimizing the risk of missing out on lucrative opportunities.
Disciplined Savings:
SIP fosters a culture of regular saving by facilitating monthly investments into selected mutual funds. This disciplined investment approach to investing not only encourages saving but also facilitates long-term wealth accumulation through market-linked investments that possess the potential to outperform inflation. By adhering to a systematic investment strategy, investors can build a solid financial foundation for the future.
Flexible Investment Tenure:
SIP grants investors the freedom to choose the duration of their systematic investments according to their preferences and goals. While certain mutual funds may stipulate a minimum investment period, there are no constraints on the maximum tenure.This flexibility empowers investors to customize their investment strategy to align with their financial objectives, whether they prefer short-term or long-term investment horizons. By offering this flexibility, SIP ensures that investors have the autonomy to adapt their investment approach as their circumstances evolve.Investing through SIP offers a structured and effective method for steadily accumulating wealth over the long term. This makes it a preferred choice for investors who prioritize building sustainable financial assets and achieving their long-term wealth accumulation goals.

Start your SIP journey today

Starting a Systematic Investment Plan (SIP) marks an important and rewarding step in your investment journey. Not only does it offer considerable flexibility, but it also reduces the time and effort required for investment management. For young investors especially, now is the right time to commence your SIP journey.

With time on your side, you have the advantage of enjoying the power of systematic investment plans (SIPs). Seize this opportunity to lay the foundation for your financial future and embark on your SIP journey today. Remember, starting early can significantly amplify the potential returns on your investments.

Experience unparalleled ease, speed, and convenience in mutual fund investing with Gainn Fintech. Our cutting-edge digital platform provides seamless access to a comprehensive array of categories and schemes within the Indian mutual fund industry. Gainn is committed to delivering world-class solutions and empowering mutual fund investors to overcome any challenges they may encounter throughout their investment journey.

Whether you’re a seasoned investor or new to the world of mutual funds, Gainn is your trusted partner in navigating the complexities of investing. Enjoy the power of systematic investment plans (SIPs) with Gainn Fintech.

Sr.No.	Activity	Expected Timelines
1	KYC entered into KRA System and CKYCR	10 days of account opening
2	Client Onboarding	Immediate, but not later than one week
3	Order execution	Immediate on receipt of order, but not later than the same day
4	Allocation of Unique Client Code	Before trading
5	Copy of duly completed Client Registration Documents to clients	7 days from the date of upload of Unique Client Code to the Exchange by the trading member
6	Issuance of contract notes	24 hours of execution of trades
7	Collection of upfront margins from client	Before initiation of trade
8	Issuance of intimations regarding other margin due payments	At the end of the T day
9	Settlement of client funds	30 days / 90 days for running account settlement (RAS) as per the preference of client. If consent not given for RAS – within 24 hours of pay-out
10	‘Statement of Accounts’ for Funds, Securities and Commodities	Weekly basis (Within four trading days of following week)
11	Issuance of retention statement of funds/commodities	5 days from the date of settlement
12	Issuance of Annual Global Statement	30 days from the end of the financial year
13	Investor grievances redressal	30 days from the receipt of the complaint

Sr.No.	Type of Activity	Timelines for Activity
1	Receipt of Complaint	Day of complaint (C Day).
2	Additional information sought from the investor, if any, and provisionally forwarded to stock broker.	C + 7 Working days.
3	Registration of the complaint and forwarding to the stock broker.	C+8 Working Days i.e. T day.
4	Amicable Resolution.	T+15 Working Days.
5	Refer to Grievance Redressal Committee (GRC), in case of no amicable resolution.	T+16 Working Days.
6	Complete resolution process post GRC.	T + 30 Working Days.
7	In case where the GRC Member requires additional information, GRC order shall be completed within.	T + 45 Working Days.
8	Implementation of GRC Order.	On receipt of GRC Order, if the order is in favour of the investor, debit the funds of the stock broker. Order for debit is issued immediately or as per the directions given in GRC order.
9	In case the stock broker is aggrieved by the GRC order, will provide intention to avail arbitration	Within 7 days from receipt of order.
10	If intention from stock broker is received and the GRC order amount is upto Rs.20 lakhs	Investor is eligible for interim relief from Investor Protection Fund (IPF). The interim relief will be 50% of the GRC order amount or Rs.2 lakhs whichever is less. The same shall be provided after obtaining an Undertaking from the investor.
11	Stock Broker shall file for arbitration	Within 6 months from the date of GRC recommendation
12	In case the stock broker does not file for arbitration within 6 months	The GRC order amount shall be released to the investor after adjusting the amount released as interim relief, if any.

Sr.No.	DOs	DON’Ts
1	Read all documents and conditions being agreed before signing the account opening form.	Do not deal with unregistered stock broker.
2	Receive a copy of KYC, copy of account opening documents and Unique Client Code.	Do not forget to strike off blanks in your account opening and KYC.
3	Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes.	Do not submit an incomplete account opening and KYC form.
4	Receive all information about brokerage, fees and other charges levied.	Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system.
5	Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions.	Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker.
6	If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the scope and implications of powers being granted.	Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed.
7	Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades.	Do not opt for digital contracts, if not familiar with computers.
8	Receive funds and securities / commodities on time within 24 hours from pay-out.	Do not share trading password.
9	Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges.	Do not fall prey to fixed / guaranteed returns schemes.
10	Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (30 or 90 days).	Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.
11	In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines.	Do not follow herd mentality for investments. Seek expert and professional advice for your investments.

Sr.No.	Guidance
1	Always deal with a SEBI registered Depository Participant for opening a demat account.
2	Read all the documents carefully before signing them.
3	Before granting Power of attorney to operate your demat account to an intermediary like Stock Broker, Portfolio Management Services (PMS) etc., carefully examine the scope and implications of powers being granted.
4	Always make payments to registered intermediary using banking channels. No payment should be made in name of employee of intermediary.
5	Accept the Delivery Instruction Slip (DIS) book from your DP only (pre- printed with a serial number along with your Client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS slips. Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demat account holders. Strike out any blank space on the slip and Cancellations or corrections on the DIS should be initialed or signed by all the account holder(s). Do not leave your instruction slip book with anyone else. Do not sign blank DIS as it is equivalent to a bearer cheque.
6	Inform any change in your Personal Information (for example address or Bank Account details, email ID, Mobile number) linked to your demat account in the prescribed format and obtain confirmation of updation in system
7	Mention your Mobile Number and email ID in account opening form to receive SMS alerts and regular updates directly from depository.
8	Always ensure that the mobile number and email ID linked to your demat account are the same as provided at the time of account opening/updation.
9	Do not share password of your online trading and demat account with anyone.
10	Do not share One Time Password (OTP) received from banks, brokers, etc. These are meant to be used by you only.
11	Do not share login credentials of e-facilities provided by the depositories such as e-DIS/demat gateway, SPEED-e/easiest etc. with anyone else.
12	Demat is mandatory for any transfer of securities of Listed public limited companies with few exceptions.
13	If you have any grievance in respect of your demat account, please write to designated email IDs of depositories or you may lodge the same with SEBI online at https://scores.gov.in/scores/Welcome.html
14	Keep a record of documents signed, DIS issued and account statements received.
15	As Investors you are required to verify the transaction statement carefully for all debits and credits in your account. In case of any unauthorized debit or credit, inform the DP or your respective Depository.
16	Appoint a nominee to facilitate your heirs in obtaining the securities in your demat account, on completion of the necessary procedures.
17	Register for Depository’s internet based facility or download mobile app of the depository to monitor your holdings.
18	Ensure that, both, your holding and transaction statements are received periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions.
19	Do not follow herd mentality for investments. Seek expert and professional advice for your investments
20	Beware of assured/fixed returns.

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