SBI Mutual Fund SIP Investment Plan 2023
Investing in SBI mutual fund schemes is an attractive option for investors looking for an easy, cost-effective way to build wealth. These are professionally managed investment vehicles that pool money from investors and invest it in a diverse portfolio of stocks, bonds, and other instruments. An SBI SIP plan is a convenient investment choice for those who wish to invest a fixed amount at regular intervals. This has several benefits, such as avoiding investing at a high value and developing a healthy investment discipline. You can start an SBI SIP investment plan with just INR 500 and grow your money with mutual funds. Read on for more SBI SIP plan details.
What is an SIP ?
A systematic investment plan, also known as an SIP, is an investment strategy that allows investors to invest in mutual fund schemes on a regular basis systematically. With SIPs, investors can choose to invest a fixed amount at regular intervals in a mutual fund, such as weekly, monthly, or quarterly. SIPs allow investors to invest in a disciplined manner, as they are not required to invest large sums of money at one time. This makes systematic investment plans an ideal investment option for those looking to invest regularly over a long period of time.
Benefits of Mutual Fund SIP Investment
Systematic investment plans have numerous remarkable benefits that make them an apt choice for investors. The best of these are explained below in detail:
Your Investment Compounds to Create Wealth
SIPs reinvest your returns from mutual fund investment until maturity, giving you the benefit of compounding. This allows you to grow your investment manifolds over a long period of time.
Teaches you Discipline through Regular Investing
The struggle to save money is real and countless people suffer from it. But with SIPs, you can invest a small portion of your monthly income into mutual funds. This investment not only translates into savings but also helps you earn returns from the securities market. Gradually, you get into the habit of putting a portion of your income aside – developing financial discipline.
You can Start With a Small Amount
It is a common misconception that you need a big sum of money to start investing in mutual funds. There are numerous SBI SIP plans that allow you to start investing with as low as INR 500 per month. Thus, even if you can spare only a small amount for investing, you can still be a part of India’s growth story and create wealth in the process.
Zero Stress about Timing The Market
This is unarguably one of the biggest advantages of taking the SIP route for investing in SBI mutual fund schemes. There is no telling whether the securities market will climb, plunge or stand still in the near future. Thus, by investing a large sum of money, you risk buying at a high price, right before the market declines. However, SIP allows you to average out your buying price and avoid market highs while investing.
You can Stop the SIP Anytime you Want
A systematic investment plan is a flexible investment tool that allows investors to opt-out at any time they see fit. Thus, if you are facing a cash crunch and find it difficult to pay your upcoming SIP installment(s), you can choose to skip one or opt out of the mutual fund SIP scheme altogether.
Goal-Based Investing
Another benefit of SIP mutual fund investing is that it allows you to invest as per the financial goal. You can identify your investment objective, allocate a fixed amount, decide on an investment duration, and start an individual SIP to meet that target.
SBI SIP Calculator
A general idea regarding returns from SBI SIP plans can help investors make informed investment decisions. However, gauging returns from SIP plans can be a challenging task. That’s where the SBI SIP calculator comes into the picture! This online calculator can help you understand your returns from your State Bank of India SIP plan. All you need to do is provide a few inputs, such as your investment amount and investment duration, and the tool calculates your total returns at the time of maturity. You can use ZFunds’ online SIP calculator to understand your returns from State Bank of India mutual fund SIP investments.
Top Up SBI SIP
A common mistake that several mutual fund investors make is that they do not top up their SIPs. This allows you to keep your investments in line with inflation or the rising cost of living, helping plan your financial goals right. Additionally, topping up SIPs can also help one reach financial goals sooner or create even greater wealth than earlier planned. You can do this by simply investing more as your income increases.
Popular SBI Mutual Fund Schemes
SBI Technology Opportunities Fund - Regular Plan - Growth
SBI Small Cap Fund - Regular Plan - Growth
SBI Large & Midcap Fund- Regular Plan - Growth
SBI Magnum Midcap Fund - Regular Plan - Growth
SBI NIFTY Index Fund - Regular Plan - Growth
SBI Blue Chip Fund-Regular Plan Growth
SBI Focused Equity Fund - Regular Plan - Growth
You can invest in any of these and many more with ZFunds.
How Do I Start an SBI SIP Investment Plan on ZFunds ?
ZFunds is one of the most user-friendly mutual fund investment platforms in India, and you can conveniently start an SBI systematic investment plan on ZFunds. You can begin by creating an account or signing up on ZFunds. Next, you can select the SBI SIP mutual fund investment scheme of your choice before entering your preferred payment date, the investment amount, and the frequency of investment.
Frequently Asked Questions about SBI SIP Investment Plan
Q. What are the charges for investing in an SBI SIP investment plan ?
A. SBI Mutual Fund charges a small fee, known as the expense ratio, which is deducted from the investment amount. The expense ratio varies from scheme to scheme and is disclosed in the scheme's offer document.
Q. What is the minimum amount for SBI SIP ?
A. The minimum SIP investment amount depends on the mutual fund scheme. While most SBI mutual fund schemes have a minimum monthly SIP amount of INR 500, there are some schemes that need investors to put in at least INR 1000 per month.
Q. What if I miss an SBI SIP installment ?
A. There is no penalty for missing an SIP installment. However, it is important to note that your systematic investment plan may be canceled if you miss three consecutive SBI SIP installments.
Q. What is the benefit of SBI SIP plan ?
A. Investing in SBI mutual funds through an SIP plan has several benefits. For instance, you do not have to worry about timing the market as a systematic investment plan always averages your buying price. Moreover, SIPs also make you disciplined as you invest a part of your earning every week, month, quarter, or year.
