Confusion starting SIP with fundsindia

POSTED BY Trishit Ray ON August 5, 2011 5:16 pm COMMENTS (13)

I have plans to start few SIPs.After going through the posts in jagoinvestor I have decided to register with www.fundsindia.com.I have a sbi a/c in a location which is not covered in their ‘ecs location list’.So I have only the option of ‘alert sip’;they will send reminders as the sip date approaches and then I have to login and debit the amount via netbanking.I have these questions:

1.Will I be able to start a new SIP without any paperwork or online work with the AMC?

2.What is the advantage of ‘alert sip’?Suppose I am away on a holiday or my pc broke or my broadband disconnected even after the 2nd day after the SIP date.What happens to my sip then?

3.As far as I understand the debited amount is not invested on the same day and they treat SIP amount as fresh(new) investments.Will it not affect my investments in this volatile market?

Frankly I like the idea of investing online without any brokerage.But these confusions are to be cleared.Since I am yet to start investing answers will be much appreciated.Regards.

13 replies on this article “Confusion starting SIP with fundsindia”

  1. Trishit Ray says:

    Hello everybody.
    I went to
    https://www.jagoinvestor.com/2010/04/interview-with-fundsindia-com-podcast.html
    and found useful informations regarding fundsindia there.Hope this would help.

    Rgards,

    Trishit Ray

  2. ashal jauhari says:

    Dear Trishit, The dividend received from the debt fund are tax free in your hands & for returns, you may earn more than 4% the SB account interest rate.

    I hope I’m clear to you now.

    Thanks

    Ashal

  3. ashal jauhari says:

    Dear Trishit Ray, Here I’m giving you an example – Suppose you want to invest in HDFC Eq. fund.

    First you w’d have to invest a lump sum amount say 25K Rs. in HDFC HI fund short term plan. It’s a short term debt fund. Once your money is in this debt fund, you may enroll an STP from this DEBT fund to HDFC Eq. fund. The time period of STP ‘ll be as per your own choice, Daily, weekly, fortnightly, mly.

    Suppose you opted for a weekly STP of 1K Rs. from HDFC HI fund ST Plan to HDFC Eq. Fund, now after 8-10 weeks, you may again add more amount in this Debt fund to continue your STP.

    Hope it ‘ll help you.

    Thanks

    Ashal

    1. Trishit Ray says:

      Can you please throw some ligt on “Also from taxation & return point, this STP route is more beneficial.”
      Regards.

  4. ashal jauhari says:

    Dear Trishit ray, for your given problem, a workable solution ‘ll be to first put some lump sum money in a debt fund & then initiate STP from that Debt fund to your choice of Eq. fund. In this case, please do note, the Debt fund & Eq. fund from the same AMC is a precondition.

    Also from taxation & return point, this STP route is more beneficial.

    Thanks

    Ashal

    1. Trishit Ray says:

      Thanks for your reply.Can you please elaborate.Apologies for late reply.

  5. AKP says:

    You are thinking too much on timing. Just act upon your SIP. Srikanth and his team is amazing and for a long term capital appreciation it does not matter for delay in SIP for a few days. We are talking about 7-10 years and not for few month’s SIPs. So, As Manish suggested taking action is important and now market is even low so best time to start.

  6. sandybansal says:

    1. Yes. But you would need to send signed documents authorizing an SIP. This is a one time process.
    2. No advantage. If you don’t wish to send your documents, they fundsindia will keep reminding you.
    3. You are right about this. My SIP has scheduled for 9th. So every 9th ECS happens and money is transferred to Fundsindia. MFs are allocated on 10th or the next working day. I dont think one day is going to make an impact over long term.

    1. Trishit Ray says:

      Thanks sandybansal for your reply.Since you have experiences of investing with fundsindia I would much appreciate if you share a few more informations and throw some light on the following questions.Suppose I wish to start SIP in 2/3 funds shall I have to sign the documents for every fund?Suppose I start a new SIP for 5 years but within that time for some unavoidable reasons I am unable to manually login and debit the SIP amount(since my bank branch is not covered under fundsindia’s ecs list) then my SIP stops.If I wish to continue that paricular fund shall I have to make a new SIP hence sign the documents again?It would have been better if my they cover my bank in their ecs list as jagadees mentioned.Thanks in advance.

  7. Trishit Ray says:

    @Jagadees
    Thanks for your reply

  8. Trishit Ray says:

    Thanks Ramesh for your reply.
    Well I most humbly say that I know SIP is to invest regularly after the same interval.My question was different.
    For example, for direct debits if the SIP date is 15 of every month, the debit will occur on 15th and the investment will happen on 16th, if 16th is the next business day. For ECS debits if the SIP date is 15 of every month, the debit will occur on 15th and the investment will happen on 17th (if 16th and 17th are business days).You can find more at https://www.fundsindia.com/content/jsp/corporate/HowDoI.do#sip
    Sorry for not elaborating at first.Now what I don’t know if it is normal with all kind of SIP investment (broker or online) or not.If you go to the link you will have a better understanding of all three problems of mine.I am a beginner so please bear with me.Thanks in advance.

  9. Jagadees says:

    @Trishit Ray
    Here is my experience. I helped a friend of mine to open the account in fundsindia. But his SBI a/c which is in Avinashi (in coimbatore, Tamilnadu) does not covered in ecs location list. But when we opened the account and initiated SIP they could able to kickstart the sip, albeit it took bit more time. Instead of usual 15 days or so, it took around some 30 days i guess. But the moot point is finally we could able to kickstart the sip because fundsinida will try to bring that bank branch under its ecs list. In the meantime we done the 1st month sip by direct investing.

    Hope it helps
    Regards
    Jagadees

  10. Ramesh says:

    The first two, you need to take directly to fundsindia people. The third one is a moot point. The whole point of SIP is time-diversification and is suited for volatile markets.

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