Mutual funds are the preferred mode of investment due to their diversified approach, ease of operation and professional management by the fund managers. It is believed that the SIP schemes yield higher returns as compared to the traditional investment instruments such as FDs, RDs, etc. Also, mutual funds further invest your money into the equities, gold, and other avenues of the financial market. Thus their returns are not constant and depend on variable factors like the fluctuations in the market, change in the interest rates and various other important macroeconomic factors.
If you are a student and are looking to invest your money in SIP schemes then it is a commendable thought. The idea of investing money at an early age should be promoted and many equity funds and savings schemes do that. If you feel that only adults who have a regular job can invest their money in the mutual funds then you are wrong. You too can save whatever you feel like from your pocket money or by cutting off the extra expenditure and invest that money in the profitable schemes like SIP using SIP calculator.
In this article, we will tell you the procedure how to invest in the mutual funds and which SIP investment avenues offer saving instruments for the students.
First, you need to apply for a PAN card. PAN card is an essential proof before you invest in any SIP. PAN card will be required to get the compliance for ‘Know Your Customer’ (KYC) forms, a step which cannot be overlooked when you are investing in SIP or mutual funds.
Once you have a PAN card you will be needed to register yourself on any platform that is used in making transactions for the mutual funds. These days, students possess expertise in the use of the Internet. If you too are Internet-friendly then you can use online fund platforms to open an account with them and register yourself. Some examples of such fund platforms that you can find online are ‘Fund supermart’ or ‘Fund India’. If you do not have access to the Internet nor are aware how to do this you can approach these fund distributors personally. Some of the well-known distributors are the Integrated Enterprises, Bajaj Capital, etc. You can also approach other brokerage firms in your area.
Mutual funds or SIP are sold by the banks in India. It is advised by the experts that you should not invest in the SIP offered by the banks without having the complete information about them. Banks might try to promote their own mutual fund companies.
As you are a student do not get attracted by the plans that carry a high premium amount. You might not be able to pay that every month. Keep in mind that you do not have a steady source of income.
Some SIP schemes in which you can invest in are given below:
You can invest your fund in the HDFC Equity. It has a low SIP of INR 500 per month. So it will be easy for you to pay the premium every month.
If you find it tough to pay INR 500 every month you can choose the Reliance Equity. In this mutual fund, you can invest for as low as INR 100 per month SIP.
Once you invest your money in SIP keep a track of the fund. Do not forget after you make the investment.
Students also have the opportunity to read about the SIP schemes in the newspapers, magazines, and websites.
