How to start SIP
Starting SIP for the first time may seem a bit complicated for many new investors. Looking at mutual funds, time period, risks and different schemes, it is often difficult to understand how to get started. But financial experts believe that starting a SIP with the right information and guidance is the simplest and most reliable way to build wealth in the long run. Nowadays young earners and students have also started adopting SIP to prepare for the future. In such a situation, it becomes very important to know how to choose the right fund.
How to start SIP?
How to start SIP and which fund would be better to choose? On this, financial expert Harshvardhan Rungta explained in detail what the beginning investors should pay attention to. He said that the first investment experience should be very positive, so that new investors can move forward with confidence and not get turned away from investing due to misunderstanding or wrong product.
Decide these three things before choosing a fund
According to Rungta, it is very important to understand three important things before the first SIP.
- Time horizon (how long to invest)
- Risk Appetite (How much risk can you take)
- Financial Goals (What is your goal)
Whatever the goal may be higher education, marriage, buying a house or retirement. The right fund is selected accordingly.
- Debt funds for short-term goals
- Hybrid funds for medium-term
- Equity funds are considered best for long term.
For the youth, the big benefit of long term investment is in the form of compounding, due to which the fund grows rapidly over time.
Take help from expert advice
Rungta said that no matter how small the SIP amount is, definitely consult a financial advisor. This helps in choosing the right fund, understanding the risks and setting goals. This makes the first investment experience safe and positive. Like Pragati, if you also want to start SIP at the beginning of college or career, then this is the best time. With proper planning and understanding, this beginning can strengthen your financial future.