The best way to create long-term wealth with the stock markets is to start a systematic investment plan. Also known as an SIP, it allows you to slowly accumulate wealth by investing a fixed amount of money periodically in stocks or mutual funds of your choosing. And that’s not all. It is also extremely easy to start an SIP online as well. Interested to know more? Continue reading to find out just how you can open an SIP online.
Step-by-step guide on starting an SIP
One of the many advantages of starting an SIP is that it can inculcate discipline. And considering the volatile nature of the stock markets, investing a fixed amount regularly can help you navigate turbulent times better than investing a lump sum amount. Here’s how you can open an SIP online within just a few steps.
1. Open a demat account
Investing in the stock market is no longer possible without having a demat account. And so, it is absolutely essential for you to first open a demat account to buy an SIP online. If you have one already, you can simply proceed to the next step. However, if you don’t, you could get in touch with a stock broker like Motilal Oswal to open one within just a few minutes.
2. Select the mutual fund
Once you’ve opened a demat account, the next step is to decide the mutual fund that you’re going to invest in. One of the many ways in which you can do that is by looking at the past performance figures of a host of mutual funds. Although past performance is not indicative of its future, doing this can help you make more informed decisions.
3. Get in touch with the mutual fund house
Now that you’ve selected the mutual fund of your choice, the next logical step is to get in touch with the mutual fund house. You might be asked to get registered with them first and complete all the KYC (Know-Your-Customer) formalities.
Once you’re done with that, you can proceed to start an SIP online. When filling up the SIP application form, make sure to accurately specify the bank account details from where the periodic SIP payments will be debited from.
And that’s it! Three steps are all that it takes to open an SIP online. Once you have an SIP up and running, all that you need to do is ensure that the bank account has funds at all times. This way, you can eliminate the chances of missing out on SIP payments.
Now that you’re aware of the steps that you have to follow, go ahead and buy an SIP online. If you still have doubts on systematic investment plans or you wish to open a demat account, you could always get in touch with Motilal Oswal.
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