SBI Mutual Fund

Dreams can only be achieved if you work towards them. Even building wealth is no different. A Systematic Investment Plan (SIP) helps you do just that. With SIP, you can invest a fixed amount in mutual funds step-by-step monthly or quarterly over a period of time, thereby averaging out your cost of investing and benefiting from the power of compounding. The power of compounding works best as you stay invested helping your money earn money over the years. After all, it is the time in the market and not timing the market that helps you create wealth for your dreams in life. So, dream more and achieve much more. Start investing through a SIP today and work towards achieving your dreams.

How SIP works?

SIP is a method of investing a fixed sum, regularly, in a mutual fund scheme. SIP allows one to buy units on a given date each month, so that one can implement a saving plan for themselves. The biggest advantage of SIP is that one need not time the market. In timing the market, one can miss the larger rally and may stay out while markets were doing well or may enter at a wrong time when either valuation have peaked or markets are on the verge of declining. Rather than timing the market, investing every month will ensure that one is invested at the high and the low, and make the best out of an opportunity that could be tough to predict in advance.

An investor can invest a pre-determined fixed amount in a scheme every month or quarterly, depending on his convenience through post-dated cheques or through ECS (auto-debit) facility. Investors need to fill up an Application form and SIP mandate form on which they need to indicate their choice for the SIP date (on which the amount will be invested). Subsequent SIPs will be auto-debited through a standing instruction given or post-dated cheques. The forms and cheques can be submitted to the office of the Mutual Fund / Investor ServiceCentre or nearest service centre of the Registrar & Transfer Agent. The amount is invested at the closing Net Asset Value (NAV) of the date of realisation of the cheque.
In short - Why SIP?
Disciplined approach to investments
No need to time the market
Harness the power of two powerful Investment strategies:
  • Rupee Cost Averaging - Benefit from Volatility
  • Power of Compounding - Small investments create Big Kitty over time
Lighter on the wallet
Reap benefits of starting early
 Secret to achieving MuchMore with SIP
List down your dreams and goals and work out a plan to achieve them through SIP
Ascertain the monthly/quarterly SIP required to achieve your goals
Identify the scheme(s) in which you would like to invest and complete the formalities for SIP investment including forms and cheques
Invest for the long term as the twin benefits of power of compounding and rupee-cost averaging work through different market cycles
Diversify your investments for your dreams through multiple SIPs in different schemes to optimise returns as per your needs
Benefits of SIP

Power of Compounding

When you invest regularly through SIP and invest for the long term, the benefits are magnified by the compounding effect. Your money grows over time as the money you invest earns returns. And the returns also earn returns, i.e. in effect your actual investments over time plus returns get compounded over the years which can grow into a large sum over a period of time. For example, the graph demonstrates the effect of compounding on monthly investments of Rs. 1000 for a period of 30 years in investments offering different rate of returns, i.e. 6% p.a., 10% p.a. and 15% p.a. A monthly investment of Rs. 1000 for 30 years in an investment offering 6% p.a. return can give you Rs. 10 lakhs vs. Rs. 70 lakhs an investment offering 15% p.a. return.
The above is for illustrative purpose only.
Power of Starting early:
The earlier one starts saving and investing regularly, the easier it is to achieve your goals. The graph below shows the impact of beginning to invest Rs. 1000 monthly at various stages of life till the age of 60 years (assuming a return of 10% p.a.). The graph below shows that a difference of `15 lakhs is seen at 60 years if one starts investing Rs. 1000 earlier by 5 years. If an investor begins investing at 25 years of age, then a corpus of over RS. 38 lakhs is available vs. a corpus of over Rs. 22 lakhs if one begins investing at 30 years of age.
The above is for illustrative purpose only.

Starting your SIP today!

You can start your Systematic Investment Plan (SIP) any time. The earlier the better. Select the Mutual Fund scheme of your choice and start today. You can download the application form and submit it along with the mentioned documents to our nearest branch.
Download - SIP Application Form - Equity Schemes

Download - SIP Application Form - Debt Schemes

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Mutual Funds investments are subject to market risks, read all scheme realted documents carefully.
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