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ESTIMATING THE DATES OF SIP

The date of SIP (Systematic Investment Plan) is a very vital parameter in case of investment. Day of SIP refers to the day on which an individual invests a fixed amount of money in a Mutual Fund or any other investment scheme regularly (monthly, quarterly etc.). This helps to create a disciplined investment approach and build wealth over time. The day of SIP is the date of every month on which SIP done by a person in installments will be paid. Every month on this date, money gets auto-debited from the person’s account, if the instructions are set for auto-investment.

In this case of investment, it is very important to identify the date of SIP, following certain guidelines. SIP day is to be chosen that coincides with pay day, so that one can invest a fixed amount every month without worrying about running out of money. SIP day is to be chosen when the person investing, posseses sufficient funds in account to invest. Stock market being volatile in nature, a person must choose a day closer to the end of the month when the market tends to be stable. A SIP date is to be chosen that works for a person’s schedule, so that the investing person does not forget to invest. If anyone is unsure, then that person must consult with any financial advisor who can provide proper guidance on the best option for specific circumstances.

Every Mutual Fund has a set of allowed SIP dates. One can choose any date from the available dates. For example – A person who started SIP on May 10^th and the next available dates are 1,7,15,21 and 28 on instant for a Mutual fund – then next SIP dates can be June 15, June 21, June 28, July 1 or July 7. To sum it up, there must be a minimum of 30 days gap from the first installment to the next installments. Once a person complete choosing the day of SIP and made the first installment payment, then the person is just one step away from automating future SIP installments. One must go to bank’s net banking and add BSE under Mutual Funds) as the biller in your bank account for automating monthly investments.

SIP is overall an investment strategy where an individual invests a small amount of money regularly, instead of investing a large amount at once. The day of SIP is usually set by an individual, who decides on a particular date of every month when the investment should be made. This helps to overcome the problem of market timing and reduces the risk of investing large amount at once.