How to start SIP?

POSTED BY Paul ON January 18, 2013 8:14 pm COMMENTS (2)

 

Hi All,

 

As part of my new year resolution, I decided to start saving. And I am a regular reader of JI blogs and forum for last 2 weeks. Enough reading and want to get in action.

 

I want to start SIP in MFs. I went throught valueresearchonline.com and found few MFs that I am willing to invest in.

 

2 large cap funds

 

ICICI Prudential Focused Bluechip Equity Retail

ICICI Prudential Focused Bluechip Equity Inst I

 

Both these fund has low risk and return is high. The expense ratio is less compared DSPBR Top 100 and Franklin India Bluechip.

 

In these ICICI Prudential Focused Bluechip Equity Inst I has better Sharpe Ratio and Alpha.

 

I think I should go for that MF. I need to decide on a mid and low cap mutual fund too.

 

Are these the factors that you all use to decide on the MF to invest? Once I start investing, how frequntly, I have to change my portfolio? Whenever the NAV gets down, should I switch to a different MF?

 

Should I invest only in one large cap MF or should invest in 2 or more?

 

What to do next? How to really start SIP now? Do I need a demat account for that? Or any normal bank account with internet banking will do? What is fundsindia.com? Should I use that? Are there any similar or better services? I am stuck here. 

 

Please advice me how to start SIP? What are the steps? Is everything online? Or do I need to go to banks/offices to get its started?

 

Sorry for posting such a newbie question. I didnot find these answer in the forum or blogs. If you guys could point me to any post, that would be really a great help.

 

Thanks in advance,

Paul

 

2 replies on this article “How to start SIP?”

  1. Dear Paul, Did you really read & understand the 2 weeks’ time spent in http://www.jagoinvestor.com & http://www.jagoinvestor.com/forum

    At this point of time itself I feel you are not at all giving a though for your investments. You are giving too much importance to non essential things & nothing to the things which should matter.

    why are you asking for swithcing right now for a fall in NAV? Can you elaborate us.

    I’m sorry in advance if you feel, I’m too much irritating you.

    By the way, IPru Focussed Blue Chip Inst. plan is not for the retail investors. so all the time spent by you on researching on this fund is not a worth of your penny. sorry dear.

    Thanks

    Ashal

  2. ICICI Prudential Focused Bluechip Equity Inst I is not for retail investor. The min investment amt is likely to be too large for most people, You should choose
    ICICI Prudential Focused Bluechip Equity Retail

    Use this step by step guide to understand how to choose a MF

    http://freefincal.wordpress.com/step-by-step-guide-to-choosing-a-mutual-fund/

    For ICICI follow instructions for SIP as given here

    icicipruamc.com/InvOnline/app/aspx/Sip.aspx

    That will answer most questions. You dont need a demat account. Most transactions can be done online for many MF companies.

    FundsIndia is a MF distributor. It is convenient to start MF investing there. But trail commissions will be paid to them from your returns. If you invest directly in MFs by doing your own research it is healthy for your growth and the growth of your money (higher returns over long term)

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