Page 98 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) .indd

Edition July 2022
Annual Issue, 10
BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
BFSI Chronicle, 2
nd
th th
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SIP SIP (Systematic Investment Plan)
A systematic Investment Plan, popularly to
as an SIP, allows you to invest a small sum
regularly in mutual fund scheme of your choice
(SYSTEMATIC and risk-taking ability. By activating an SIP, a
certain fixed amount (Generally minimum
Rs.1000 for most of the mutual funds) is
INVESTMENT deducted from your bank account every month.
which gets invested in the mutual fund of your
choice.
PLAN) Unlike a lump sum investment, you spread your

investment over time with an SIP. Therefore,
you don’t need to have a large amount of
money to get started with your mutual fund
investment. By investing via an SIP, you are
keeping aside certain sum of amount in your
bank account which is transferred to the chosen
mutual fund scheme on the date chosen out of
available dates.

How does SIP works?
While investing in mutual fund through SIP
mode you invest certain fixed amount (for e.g.,
Rs.10000 per month), this amount is transferred
to chosen mutual fund on fixed date every
month (for e.g., Say 10Th of every month) from
your bank account to which you have given
ECS mandate. Against this investment every
month you receive units of the said chosen
fund equivalent to your fixed investment
amount/NAV of the said scheme on the date on
which your amount is received by the mutual
fund. Suppose you have chosen SBI Blue Chip
scheme and on 10th May 2022 NAV of SBI Blue
Chip is Rs.55.0434 the 10000/54.0739 =184.9321
units of SBI Blue chip will be credited to your
folio on 10th May 2022. In this fashion every
month Rs.10000 will be transferred from your
bank account on 10Th of every month till you
desire through ECS and units will be credited
Shri Sudhakar Kulkarni to your folio however every month number
Certified Financial Planner CM

of units credited to your account will depend

The Institute Of Cost Accountants Of India

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