How to invest in an SIP?
All MFs have predetermined dates of any given month on which an investor can make regular investments in SIPs. For instance, if you receive your salary on the first of every month, you can choose seventh or tenth of every month as your SIP date. But if you get your salary by the month-end, the first of the following month would be the ideal, as you wouldn’t want your money lying idle in the bank account for long. MFs also provide direct debit facility with all the major banks. You can also give post-dated cheques (at least 12) to the MF. Who should invest? If you want steady returns and would like to avoid market volatility, SIPs are for you. But they are not suitable for short- to very short-terms. These are most suited for those who have a regular stream of inflows and would like to deploy a part of their proceeds in the market, irrespective of what level the market is at. ELSS SIPs. Before investing in an ELSS SIP, do remember that the lock-in period for each instalment is three yea
