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Should you choose SIPs over fixed deposits?

  • Highlights

  • Plan your financial goal before choosing an SIP

  • Invest in SIP based on the wealth corpus you want to build

  • Choose best SIPs with Bajaj Finserv for high returns

  • Apply with just 6 documents to start your SIP now

Investing in an SIP can help you make the most of your money. This is because the interest is compounded each year, thereby giving you better returns. Regular contributions towards SIP usually balances out market dips, and helps you inculcate a habit of saving and investing is a more disciplined way. Furthermore, you gain high returns and can even make your savings inflation-proof with SIPs. Some other benefits include tax deductions under Section 80C and being able to invest as little as Rs.500. However, in order to avail these benefits and make the most of your SIP investment, it is important to invest in an SIP the right way. Take a look at how you can do it.

Determine a financial goal

Before you start investing or choosing a SIP, it is essential for you to determine your financial goal. This includes noting down an amount you wish to accumulate over time. For example, you may set down a financial goal of achieving Rs.5 lakh in 3 years. You can also set down a financial goal based on a future expense such as the down payment for your home, funding the purchase of a new car, or investing in home renovation.

Select an SIP based on your financial goal

In order to select atop SIP according to your financial goals, it is always better to speak to a fund advisor. Ensure you are informing them about your long-term and short-term goals. This will allow the fund houses and experts to gauge your time line and risk appetite. You can also use an SIP calculator like this need calculator to work backwards from the amount you want to save for.

Use your calculations and expert help to find the best SIPs. Opt for a longer tenor, as the more time you stay invested, the higher your returnswill be. Even if the amount you put forward regularly is low, choosing long-term plans will allow your savings to grow with the interest compounding every year. Additionally, the rupee cost averaging system, over a longer stretch of time, will stabilise your returns and ensure growth for your investment.

One beneficial way to invest in a high-yielding top SIP is to select a fund house that assures growth on your investment.

Choice of tenor

Whether you pick a small-cap or a large-cap SIP, the potential of gain in both cases are high. This is owing to the fact thatthe returns on SIPs are calculated through rupee cost averaging. This means the longer you stay invested with SIPs, the higher is your return. However, in case you are unsure, you can choose an SIP for just 6 months too. FDs allow you similar flexibility.If you want to claim tax benefits, then for both, staying invested for a minimum period is must. In case of FDs it is 5 years and for SIPs, backed by ELSS, it is 3 years.

Once you consider these factors, as well as your goals, you can easily decide to invest in one over the other. However, it is best to include both SIPs and FDs in your portfolio to fulfil different needs and create a balanced folio.

Invest in Bajaj Finserv’s SIP easily with just 6 documents

In order to invest in an SIP with Bajaj Finserv, you will need a set of forms. Carry them along when you visit your nearest branch and allow the fund experts at Bajaj Finserv to set your investment on track. Here are the 6 documents you need.

1. Common Mutual Fund application form
2. Mutual Fund ECS mandate form
SIP registration form for a small recurring amount
4. Risk Profiler form
5. KYC acknowledgement letter or a printout of the KYC compliance page
6. Cheque* of the SIP amount

*If the cheque does not have your name, you will have to provide a bank statement for your account for more than 15 days.

As you can see, investing in some of the best SIPs in India is easy and hassle-free. Begin your journey by finding out about the SIP eligibility criteria.

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All you need to know about selecting the best SIP


All you need to know about selecting the best SIP