How Can a Student Start To Invest Through A SIP?

Most of us think that people can start investing only after they attain a proper job and are in the family way. Whoever thinks that a student should invest? After all isn’t the student life considered to be the most carefree stage in an individual’s life cycle? But this notion is fast changing.

Carefree students soon realize that they have landed on hard grounds once they enter their youth stage. Their parents, families and their circles suddenly start expecting them to become responsible.

The changing life patterns bring in changing solutions. So for the students of today SIP can be a great way of saving for the future.

Students Can Choose from The Low Investment SIP Options

Daily the stock markets and money markets bring opportunities for unprecedented gains for the watchful investors. The stock market is really a great place to make your money grow. But students are busy carving out their careers and hardly get the time to monitor the stock markets. Also even if they would want to invest in a particular stock their limited savings would hardly allow them to do so in a gainful manner.

Top mutual fund companies have brought in the SIP Plans or systematic investment plan which is ideal for investments by students. Through SIP students can put their savings into well planned mutual fund portfolios that offer high returns and have low risks due to being diversified portfolios.

Features of a mutual fund SIP that make it an ideal savings option for students include the following:

  • SIPs are managed by veteran fund managers of proven expertise
  • Investments can be made periodically even monthly or weekly
  • Investments in SIP can be as low as Rs 500 per month
  • Top mutual fund SIP plan portfolio is well diversified
  • Top SIP plans have been yielding minimum annualized returns above 14 %
  • Some SIPs are even yielding very high annualized returns of above 25%
  • SIPs are flexible,and investments can be withdrawn
  • SIPs can be started instantly online with very little documentation requirements
  • SIP performance can be monitored daily from online device
  • Mutual fund returns are exempt from taxes

Choosing SIP Plan through Online Customer Portal

Online customer portal provides details of the leading SIP plans on the website. Choosing customer portal for opening a sum provides the student investor a customer platform instead of a product platform.

The benefits a student investor can get from investing through customer portal include the following:

  • Students can compare features and benefits all top SIP plans
  • Students can apply SIP calculator to assess returns
  • Students can get quotes for varied investments and tenure
  • Portal in conformance with the latest web security protocols
  • Secure financial transactions through high-security payment gateways
  • Students can create their ownlogin page on the customer portal
  • Students can monitor the performance of their invested funds regularly
  • Students can seek assistance of financial experts
  • Portal with online chat and interaction facilities enables all time support

Criteria for Selecting a SIP Based Scheme

Mutual fund schemes have different objectives. Some aim for stable and balanced returns whereas others aim for high growth. Students can choose a SIP scheme that concurs with their own objectives. What do they seek out of their investments? Is it stable income or splendid money accrual? That would generally depend on the particular student investor’s risk appetite and investment preferences.

The general criteria for choosing SIP schemes can include the above mentioned:

  • The annualized returns and performance of the SIP portfolio
  • The fund manager managing the SIP portfolio
  • Reviews and feedbacks from friends and relatives
  • The risk and volatility profile of the SIP fund portfolio
  • The level of comfort in making investments
  • The flexibility of the SIP mutual fund plan
  • The minimum tenure of the SIP scheme
  • Dividend and growth incomes
  • The minimum investment required for opening the SIP scheme

Do’s and Don’ts for SIP Investments

SIP mutual fund investment portfolios comprise market instruments. Diversified portfolio eliminates most of the risk and volatility yet complete stability cannot be expected when you monitor the SIP fund graph on your tablets or smartphoneson a daily basis. Do not be panicked if you see some downward trend as that is soon out taken by the upward market swings and high gain realizations. Even the highly stable investment options are subjected to the market swings,butsince the investments are mostly channelled through debt basedinstruments, the impact is not directly on the fund. The highly stable investment options yield the same low returns even if the markets gain substantially.

Though you can withdraw your money anytime from a SIP plan, do not be in haste. Allow the annualized return factors to take effect and the investment base to gain the required spread.


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