What is SIP? Best SIP investing in Nepal 2021
SIP stands for Systematic Investment Plan, and many investors confuse it for a mutual fund. It is, on the contrary, a tool for investing in mutual fund schemes.
Can I attain my objective by investing in SIP? This is a common question asked by investors. SIP allows you to invest in mutual fund schemes on a monthly basis, starting with a minimum of Rs. 500. To attain your goals over time, stagger your investments in SIP mutual funds. Mutual fund companies offer a basic and uncomplicated investment solution for beginners called a Systematic Investment Plan.
How to start SIP?
Here are some steps :
- Determine and evaluate your risk tolerance.
Assess your risk appetite based on your age, income, and other factors before diving into the world of SIP or investments in general. Estimating one’s risk profile is important for an investor. For example, as you become older, you may be saddled with several financial obligations, lowering your risk tolerance. If you are a new investor, a systematic investment plan (SIP) is a straightforward method to get started. The key is to get started early, at the beginning of one’s career, since you may take a larger risk, and with a higher risk comes the possibility of a higher return. However, it is critical to investigate this issue in order to design effective risk mitigation techniques.
- Recognize your specific goals
After you’ve determined your risk tolerance, you’ll need to assess your investment’s primary goal, which is the amount of money you estimate a SIP investment to bring you over time. To put it another way, you must first choose your investment aim and then define your goals accordingly. SIP can assist you in doing just that.
Individuals who want to plan their retirement by investing in mutual funds through a systematic investment plan (SIP) can choose an investment portfolio with diversification in several asset classes such as equities, debt, gold, and others.
- Consider qualitative and quantitative factors while selecting a SIP mutual fund.
There are many mutual fund schemes available for SIP in the market today, but make sure you pick the proper one using the steps outlined above in steps 1 and 2. Perform due diligence on the investment portfolio or seek guidance from an investment advisor based on your risk appetite, financial goal, fund performance, fund house credibility, fund manager track records, and most crucially, perform due diligence on the investment portfolio. Always remember that past performance isn’t always indicative of future performance, and that a top performer isn’t always the greatest fund!
- Make a schedule and a day that suits for you.
The SIP allows you to choose an auto-payment option, which eliminates the need to invest on a regular basis. However, before you begin the process, you must first find a convenient date. Please bear in mind that you can choose from a variety of dates to route your investments through SIP each month, depending on your preferences, and then choose a time horizon for your SIP investment. The investment horizon of a SIP is often pre-determined based on your financial goal and investment amount. To make your investing selection easier, you can utilize a SIP calculator. To enroll in a SIP investment, you can do it either offline or online.
The methods below will answer the topic of how to establish a SIP investment for beginners using an internet platform.
How do I invest in a SIP online
- Complete the KYC process by following the SIP instructions below.
- All of the required ID proofs must be submitted.
- Start the Know Your Customer (KYC) process.
- After that, you must complete in-person verification.
- Register your SIP
- Select your SIP mutual fund based on your investment objectives.
- Select the amount
- Choose from a variety of SIP options, such as daily, weekly, or monthly. choose a date
- After finishing the process and verification, SIP will begin after a month.
In Nepal, which SIP is the best?
- Global IME Samunnat Scheme
- Laxmi Value Fund
- Siddhartha Investment Growth Scheme
- Siddhartha Equity Oriented Scheme
- Nabil Balanced Fund
- NMB Hybrid Fund
- Siddhartha Equity Fund
- Sunrise First Mutual Fund
- NIBL Sambriddhi Fund
- NMB Sulav Investment Fund
- Laxmi Unnati Kosh
- NIC ASIA Balanced Fund
- NIC Asia Growth Fund
What is SIP? Best SIP investing in Nepal 2021
Is SIP better than Fixed Deposit?
When considering the flexibility of investing, the benefit of diversification, tax benefits, and higher returns, a Systematic Investment Plan is a preferable investment alternative than a Fixed Deposit.
How much can I invest in SIP?
In a SIP, there is no limit to how much you can invest. The minimum amount you can invest per month is Rs. 500.