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Simplified SIP registration and payment process: A step-by-step guide

SIP registration
Simplified SIP registration and payment process: A step-by-step guide

A systematic Investment Plan(SIP) is the process of investing a certain amount of funds within every investing time period with a determined rate of return. It is a very popular investment in Nepal and throughout the world. SIP primarily involves investing in mutual funds and is associated with Open-end mutual funds. Interest in SIP has been rapidly increasing among the people in Nepal and in different countries as SIP is a long-term investment. So let’s discuss on requirements to register SIP and continue the payment. We have also included the step-by-step procedure for registrations and payments along with its benefits.

What is SIP registration?

Systematic Investment Registration is an easier way to invest in mutual funds. It is the process that allows the users to invest on a timely basis agreement. The compounding effect, wherein the returns are reinvested, accelerates the growth of invested funds over time. This compounding factor makes SIP different from other investment options. Anyone having a bank account and internet banking facility can register on SIP online.

 Basic requirements for SIP registration

  1. Bank Account
  2. Demat account and BOID number.
  3. Personal phone number and an email account.
  4. Digital wallets for payments

How to register for SIP online?

STEP 1: Collect all the required documents

The required documents include a citizenship card, address details, or proof in the form of a license, utility bill, image of passport-size photos. And above all of this KYC is a mandatory requirement.

STEP 2: Be KYC complaint if you are not yet

The KYC investors need to provide all the basic information. It involves providing identity and proof of documents to comply with regulatory requirements.  

STEP 3: Fill out the SIP form

Obtain the SIP form from the mutual fund house or from an authorized website online. 

  • Fill in your personal details/applicant details
  • Application details
  • Bank Details 
  • Source of Fund (Salary, Business, Loan, others)

Decide the scheme (monthly, quarterly, semi-annually, or annually) plan or option you want to invest depending on your choice. Most of the investors choose the monthly frequency. 

You can also get help from the SIP Calculator in order to decide the time period and return rate for the investment.

STEP 4: Submit Application

Once you finish filling up all the details submit the application.

STEP 5: Payment method

After submitting the application, proceed to the payment method and choose the way you want to pay for the investments. You will have eSewa, Khalti, and Connect IPS as a payment method. Digital wallets may charge an extra Wallet Payment fee.

You will get a response within 24 hr after you have submitted and made payment. If not contact the respective office.

Benefits of SIP registration

  • Affordable: SIP allows one to invest in small amounts ie. from Rs 500 making it accessible to a wide range of investors. This makes it easier for people to invest even though they don’t have a lot of money to invest.
  • Long-term investment: SIP enables sustainable investment. It depends on the investors for how long they want to invest. Consistent investment for a longer period will lead to wealth maximization.
  • Online Access: As we can register our SIP account online, we can also keep on operating it online. We can monitor our SIP investment, view statements, and make changes to our SIP conveniently.
  • Convenient: It is convenient to register accounts and make payments online. We don’t have to go to the bank or do a personal visit if we have to make any kind of changes in our SIPs.
  • Professional Management: The Systematic Investment fund is managed by professional finance managers. Many financial advisors also give information and guides for investing in SIP.
  • Liquidity: Manu Mutual funds offer liquidity. Investors can redeem their units and also make partial withdrawals.

What is SIP payment?

SIP payment refers to the periodic payment that an investor makes in SIP. While registering SIP the investor chooses the interval period to make the investment. So, making a payment of that certain amount at the chosen time interval is known as an SIP payment. SIP payments are convenient and flexible allowing investors to make affordable investments.

SIP payment process

You need to open your mutual fund account and pay the amount you have selected to deposit at every interval. The payment can be made online with the help of an online payment method.

Payment MethodPayment charge
Capital’s BankRs. 5
eSewaRs. 5
KhaltiRs. 5
Connect IPSRs. 4

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FAQs

Which SIP is best to register in Nepal?

Choosing the best SIP depends upon various factors like your risk tolerance, your financial goals and also on the policies of the banks on which you think are best.

What is the Dividend Re-investment plan in SIP?

A Dividend Reinvestment plan is a type of investment plan where the dividend stocks gained form you previous investment is automatically reinvested. Which is beneficial in the long run showing up the effect of compounding.

How many SIPs are there in Nepal?

There are altogether 7 SIPs in Nepal till the date.

Can I cancel SIP anytime?

Yes, you can cancel SIP anytime.

How do I pay my missed SIP installment manually?

You can pay your missed SIP online. Login to your mutual fund account look for payment of the missed installment and make the payment for the missed installment.

How can I skip SIP for a month?

In order to skip your SIP for a month contact your mutual fund company and ask them for a skip of a month. You need to provide them the details of your account and they will set the specific amount date you want to skip and then the date you'll continue.

Can we skip SIP for one or two months in mutual fund investments?

Yes, you can usually skip one or two SIP payments in mutual funds, but it depends on the specific fund's rules. Check the fund's policy and consider reducing your SIP amount temporarily instead to avoid potential penalties. Always consult your respected mutual fund and read the scheme's documentation for guidance.

Conclusion:

After reading the article you’ll be able to register your account and make payments online. We have also talked about the benefits of SIP registration. SIP registration is a straightforward process and we can get a lot of benefits by investing in SIP.

Categories
News Finance

Learn How SIP Calculator Works for Your Investments

SIP Calculator
Learn-How-SIP-Calculator-Works-for-Your-Investments
SIP Calculator

SIP Calculator

Result:

Future Value of SIP:

Amount Invested:

Total Gain:

 

Systematic Investment Plan (SIP) is the process of investing a certain amount of funds within every investing period with a determined rate of return. It comes under an open-ended mutual fund as we can invest in it for as long as we want. It has been nearly 4 years since SIP was introduced in Nepal. SIP Calculator is a key tool for wealth growth. In this blog, we will understand the power of SIP investments. Before learning how to calculate SIP, we must understand what SIP is.

About SIP Calculator

The SIP calculator is designed to calculate the FV (Future Value ) of the fund that you invest until you get its return. Generally, it calculates the amount that you accumulate after the completion of your investing period.

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Essential Terminologies in SIP

  • Mutual fund: A mutual fund is a collected fund or lump sum that is collected by investors and again that money is invested in other certain bonds, debt, shares, equity, etc. It consists of the portfolios that are overseen by the finance or mutual funds manager.
  • NAV (Net Asset Value): Our accounts will be credited as per the NAV values of mutual funds. Net Asset Value is the unit price of the mutual funds with every single unitThe performance of the mutual fund is evaluated by the market value of NAV.
  • Rate of return: The rate of return refers to the percentage amount on what percent gain that will be accumulated on the fund when we sell SIP or withdraw from SIP. The rate of return determines the level of going of our deposits.

Investing periods on SIP

  • Weekly
  • Monthly
  • Quarterly
  • Half-yearly
  • Yearly

Requirements for calculating SIP

  • The amount of money that you want to invest in every fixed period
  • The period or for how long you want to invest in a Systematic Investment Plan (SIP).
  • The rate of return by determined by the SIP mutual funds.

Note: In the absence of any of these requirements Systematic Investment Plan (SIP) cannot be calculated.

How can we calculate SIP?

Since we all are known to the online SIP calculator it uses the following formula for Calculating Future Value (FV) with SIP:

The future value (FV) of a Systematic Investment Plan (SIP) can be calculated using the following formula:

FV = P * [{(1 + r)^n – 1} / r ] * (1 + r)

Where:

  • FV: Future Value
  • P: Principle amount (monthly)
  • r: Expected rate of return (monthly)
  • n: Number of months or period

This formula allows you to estimate the future value of your investment and SIP, taking into account the monthly contribution (P), the expected monthly rate of return (r), and the investment duration in months (n).

Benefits of Knowing the SIP Plan Calculator

  • Secure manual result: SIP is calculated easily through an online SIP plan calculator. But with the given formula we can also get an accurate result if we keep the given interest rate and rate of return within the period.
  • Easy way of calculating: Calculating the funds and investments has never been easier in finance. The SIP plan calculator is simple and uncomplicated which makes it easier to do further calculations. You don’t have to be a maths master to do such calculations.
  •  Discipline in investments: We have to invest our funds within every fixed period which makes people come up with the determination to keep the investment going smoothly with every passing month or with every passing period.
  • Affordability: You will not be required with large funds or bulk amounts to start investing in SIP. You can start investing with as little or as much as of funds you have. The calculator on the website is also free to calculate our needed requirements.

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FAQs:

Is the SIP calculator dependable?

Yes, the SIP calculator is dependable. So far the investors have gained positive results and outcomes from the SIP calculator. You can now calculate the SIP from wherever and wherever you want to.

Can I withdraw my SIP whenever I want?

Yes, the amount can be withdrawn with the likes of investors. Despite that, many SIP mutual funds have exceptional policies regarding investments and withdrawals.

Do we need to keep the same rate of return while calculating SIPs?

No, the rate of return varies from different SIPs mutual funds. You can keep the amount of rate determined by the SIP mutual funds themselves.

How long do we need to invest in SIP for withdrawal?

SIP is an open-ended mutual fund. So we can deposit the funds for as long as we want to and can withdraw them anytime we want to.

How can I calculate SIP?

You can use our given SIP calculating formula to calculate SIP. Or, you can also find online SIP plan calculators that are credible.

CONCLUSION

So, here in a nutshell you can now be able to calculate the SIP using the formula from above. It is essential to learn how to calculate SIP in today’s world. Leaning this helps you decide which mutual fund schemes are better and which give more profit. For healthy growth of your wealth SIP and systematic Investment Plan calculator are crucial.