There can be no better way to invest in mutual funds than through a Systematic Investment Plan (SIP) which is one of the most organized ways of investing in mutual funds. This article is to understand how one can invest in UTI Mutual Funds through SIP and how can one calculate future profits through the SIP Calculator.
SIP stands for Systematic Investment Plan and it is a method under which mutual funds can be slowly invested with a fixed amount at regular intervals.
SIP calculator especially refers to a simple application that assists people in determining the possible future value of the investment amount through regular savings or contributions.
Procedure to Invest in UTI Mutual Fund through SIP
1. Understand Your Investment Goals:
Here, it’s vital to understand your financial objectives, your propensity to take risks, and how long you are willing to stay invested. Thereby UTI Mutual Funds provide various schemes that may be divided into equities, debts, combinations of both, and tax savings funds.
2. Choose the right UTI mutual fund:
Explore the UTI Mutual Fund options available and identify one that meets you or your investment’s objectives.
3. Adhere and fulfil all the instructions of the KYC:
Before investing in mutual funds, you need fill the knows your customer or Customer Awareness Form. This usually entails the following: Producing an identification, proof of residence, and a picture.
4. Determine the SIP amount and how frequently it shall be made
SIPs can be structured to operate on a weekly, monthly or quarterly basis.
5. Set Up the SIP
It can be undertaken on the internet using a link from the UTI Mutual Fund Website or from a financial advisor, or a mutual fund distributor.
If you prefer online, follow these steps:
Navigate to your trading platform to get started.
Choose the required mutual fund scheme amongst the options available. Select the SIP option if available or fill in all relevant information such as the amount of money to be invested periodically.
Custodial Account: Fill in your bank details for the auto debit for the SIP amount.
These are the details for your initial SIP; review and confirm them to proceed.
6. Have a Watchful Eye on Your Investments and Check Up on Them Regularly
It is also important to track the mutual fund investments you make.
This is because using a SIP Calculator can help you estimate the annual returns that you are likely to reap from your SIP investment.
Access the SIP Calculator:
Enter the Monthly Investment Amount: You need to determine the amount of money you want to allocate per month for the investment.
Specify the Investment Duration: SIP is about investment where you have to select the period for which you want to invest your money.
Expected Rate of Return: Enter the expected annual rate of return which represents the return on investment expected per annum.
Calculate: After you enter all the numbers in the form, click on the calculate button to find the future value of your investment.
Conclusion
Systematic investment plans are easily the most effective ways in which an individual can develop wealth over some time in UTI mf. SIP calculator helps in minimizing this dilemma as it comes up with definite predictions of your possible incomes that will help in preparation for achieving your objectives. Whoever considers the principle of reasonable regular saving, producing stable and consistent earnings on their investments at long last, must not waste time on this and pull himself together and start investing today.
