How can a Student start to Invest through SIP?

Most of us think that people can start investing only after they attain a proper job and are in the family way. Whoever thinks that a student should invest? After all isn’t the student life considered to be the most carefree stage in an individual’s life cycle? But this notion is fast changing.

Carefree students soon realize that they have landed on hard grounds once they enter their youth stage. Their parents, families and their circles suddenly start expecting them to become responsible.

The changing life patterns bring in changing solutions. So for the students of today SIP can be a great way of saving for the future.

Students Can Choose from the Low Investment SIP Options

Daily the stock markets and money markets bring opportunities for unprecedented gains for the watchful investors. The stock market is really a great place to make your money grow. But students are busy carving out their careers and hardly get the time to monitor the stock markets. Also even if they would want to invest in a particular stock their limited savings would hardly allow them to do so in a gainful manner.

Top mutual fund companies have brought in the SIP Plans or systematic investment plan which is ideal for investments by students. Through SIP students can put their savings into well planned mutual fund portfolios that offer high returns and have low risks due to being diversified portfolios.

Features of a mutual fund SIP that make it an ideal savings option for students include the following:

SIPs are managed by veteran fund managers of proven expertise

Investments can be made periodically even monthly or weekly

Investments in SIP can be as low as Rs 500 per month

Top mutual fund SIP plan portfolio is well diversified

SIPs are flexible, and investments can be withdrawn

SIPs can be started instantly online with very little documentation requirements

Criteria for Selecting a SIP Based Scheme

Mutual fund schemes have different objectives. Some aim for stable and balanced returns whereas others aim for high growth. Students can choose a SIP scheme that concurs with their own objectives. What do they seek out of their investments? Is it stable income or splendid money accrual? That would generally depend on the particular student investor’s risk appetite and investment preferences.

The general criteria for choosing SIP schemes can include the above mentioned:

The annalized returns and performance of the SIP portfolio

The fund manager managing the SIP portfolio

Reviews and feedbacks from friends and relatives

The risk and volatility profile of the SIP fund portfolio

The level of comfort in making investments

The flexibility of the SIP mutual fund plan

The minimum tenure of the SIP scheme

Dividend and growth incomes

The minimum investment required for opening the SIP scheme