Investors often have the notion that SIP is an investment in itself. It is a blunder to believe in such a myth. An SIP serves as a method of investing in mutual funds rather than being an investing mechanism. SIP is a special friend to the investors who are beginning their career and investment as well. We all know when a person takes up a job as a fresher, it is practically not viable for him/her to opt for lump sum as an investment method. However, they are paid enough to pull out a small amount from their salary to be invested monthly via SIP. Hence, penny by penny they can contribute towards accumulating a huge fund.
Automation is being widely accepted in almost every field, whether it may be education or investing. With the introduction of online investment strategy, the clients are able to get more freedom of investing as compared to the physical path. The investors can manage their money, decide the scheme in which they want to invest and also make the payment through various online mechanisms being extended by the banks.
Process of online SIP investment?
The online investing mechanism has undoubtedly decreased the tautness of clients. Mr Sharma was trying to find an answer to the question of how to invest in SIP, when his friend, who was already an investor, visited him. Mr. Sharma shared his dilemma with is friend and to satisfy the query his friend explained the following process involved in how to invest in SIP.
Analyzing your requirements
For taking the correct investment decision and choosing an appropriate scheme, the clients need to understand their requirements. It is rightly quoted, “An investor without an investment objective is like a traveler without a destination”. This phrase signifies the importance of having an investment objective before commencing the process of investment. Each individual has different nature and thinking. In the same way, every client has varying investment needs like some might invest to multiply their money manifolds to buy a property in the long run, while a few may want to save tax along with investing, etc. The reason may be any, but the realization of that need is necessary because it serves as the basis of selection for the type of scheme. Mutual funds have launched various schemes in order to suffice the needs of all investors. Thus, to select one of the plans from the wide range, clients have to identify their aspirations from the money they tend to invest.
Creating a personalized portfolio
As you file all your documents in a folder manually, there is an online folder known as portfolio which holds a list all your investments including stocks, bonds and cash. There are two types of portfolios first, it is concerned with a scheme. The portfolio of a scheme holds the investment records of a particular plan. It managed by the fund managers and gives the information of the sectors where the scheme tends to invest. The client has no interference in the investment strategy and portfolio management of a plan. Second, is a personalized portfolio where the client’s investment details are recorded. When using an online investment strategy the clients enjoy a liberty to manage it according to their preference with the help of experts. A strong portfolio with a less number of scripts is far more better than the one with inappropriate and more number of schemes. Hence, creation and management of the portfolio can be done with the help of experts even in online investing.
Realizing payment in a safe manner
There are a lot of facilities have been launched by banks to provide handy service for their clients like ATM, debit/credit card, NEFT, RTGS, etc. All the facilities allow the clients to have a better approach to the bank transactions and making them easier to execute. With an increased use of online methodologies for buying and selling, clients require a secure payment mode. This not only reduces the time but also ensures that the payment is carried out through a safe mode. The same concept is applicable in online investing option also. The clients need not stand in long queues and wait for long first to withdraw and then to deposit the money. With the help of any of the online transaction facilities an investor can transfer the money safely from one account to the other.
The three-tier process depicts the overall working of an online investment strategy. The clients have the chance to be more independent and can adopt a secure investment avenue for their hard-earned money.
Automation is being widely accepted in almost every field, whether it may be education or investing. With the introduction of online investment strategy, the clients are able to get more freedom of investing as compared to the physical path. The investors can manage their money, decide the scheme in which they want to invest and also make the payment through various online mechanisms being extended by the banks.
Process of online SIP investment?
The online investing mechanism has undoubtedly decreased the tautness of clients. Mr Sharma was trying to find an answer to the question of how to invest in SIP, when his friend, who was already an investor, visited him. Mr. Sharma shared his dilemma with is friend and to satisfy the query his friend explained the following process involved in how to invest in SIP.
Analyzing your requirements
For taking the correct investment decision and choosing an appropriate scheme, the clients need to understand their requirements. It is rightly quoted, “An investor without an investment objective is like a traveler without a destination”. This phrase signifies the importance of having an investment objective before commencing the process of investment. Each individual has different nature and thinking. In the same way, every client has varying investment needs like some might invest to multiply their money manifolds to buy a property in the long run, while a few may want to save tax along with investing, etc. The reason may be any, but the realization of that need is necessary because it serves as the basis of selection for the type of scheme. Mutual funds have launched various schemes in order to suffice the needs of all investors. Thus, to select one of the plans from the wide range, clients have to identify their aspirations from the money they tend to invest.
Creating a personalized portfolio
As you file all your documents in a folder manually, there is an online folder known as portfolio which holds a list all your investments including stocks, bonds and cash. There are two types of portfolios first, it is concerned with a scheme. The portfolio of a scheme holds the investment records of a particular plan. It managed by the fund managers and gives the information of the sectors where the scheme tends to invest. The client has no interference in the investment strategy and portfolio management of a plan. Second, is a personalized portfolio where the client’s investment details are recorded. When using an online investment strategy the clients enjoy a liberty to manage it according to their preference with the help of experts. A strong portfolio with a less number of scripts is far more better than the one with inappropriate and more number of schemes. Hence, creation and management of the portfolio can be done with the help of experts even in online investing.
Realizing payment in a safe manner
There are a lot of facilities have been launched by banks to provide handy service for their clients like ATM, debit/credit card, NEFT, RTGS, etc. All the facilities allow the clients to have a better approach to the bank transactions and making them easier to execute. With an increased use of online methodologies for buying and selling, clients require a secure payment mode. This not only reduces the time but also ensures that the payment is carried out through a safe mode. The same concept is applicable in online investing option also. The clients need not stand in long queues and wait for long first to withdraw and then to deposit the money. With the help of any of the online transaction facilities an investor can transfer the money safely from one account to the other.
The three-tier process depicts the overall working of an online investment strategy. The clients have the chance to be more independent and can adopt a secure investment avenue for their hard-earned money.
Hi i Have Read Your Blog Its Amazing Information For Me About SIP Investment And SIP Mutual Fund........
ReplyDeleteThank You For Posting And Sharing With Us Keep It Up.....
Financial Planning Company.
grt
ReplyDelete