This Diwali, try financial gifts like SIP to secure your loved ones' futures

Mumbai: The occasion of Diwali is marked by the exchange of love, laughter and gifts in all forms between loved ones. While dry fruits, savouries, electronic appliances, apparel, etc form a part of these gifts, one should also explore financial gifts to secure the future of one’s loved ones.

Financial instruments like SIPs are more pragmatic gifts in the long run.

What is an SIP?

SIP or Systematic Investment Plan helps one to regularly invest small amounts in a mutual fund scheme. It is one of the best ways to enter the equity market. It is viable since a regular salary earner can start this investment without a heavy one-time investment.

Mutual fund houses also offer daily SIP, weekly SIP, quarterly SIP, etc. SIPs also helps one escape the risky nature of markets as the money is invested in a staggered manner.

Moreover, since SIPs are open-ended, one can pull out their money at any point of time. Full and partial withdrawal is possible during or after the SIP tenor.

How to start an SIP?

1. Register with a fund house. For this, submit an identity proof, address proof and a photograph. Also, you have to confirm your physical existence through an In-Person Verification or (IPV) with the fund house through e-kyc.

2. Log on to the mutual fund website, click on the registration link for new accounts to create an online transaction account.

3. Log in to your account, select the mutual fund scheme, chose an SIP date and submit your request.

4. You are ready to roll out your SIP.