What is SIP?
Systematic Investment Plan (SIP) is an investment plan (methodology) offered by Mutual Funds wherein one could invest a fixed amount in a mutual fund scheme periodically, at fixed intervals – say once a month, instead of making a lump-sum investment.
The SIP instalment amount could be as little as INR 500 per month. An SIP is similar to a recurring deposit where you deposit a small /fixed amount every month.
Common sense suggests that ‘buying low and selling high’ is perhaps the best way to get good returns on your investments. But this is easier said than done, even for the most experienced investors. There are many factors at play when it comes to any market - debt or equity, and all of them are inextricably linked.
SIP is a simpler approach to long-term investing in disciplining and committing to a fixed sum for a fixed period and sticking to this schedule regardless of the conditions of the market
Benefits of Mutual Funds
- Professional Money Management: Fund managers are responsible for implementing a consistent investment strategy that reflects the goals of the fund. Fund managers monitor the market and economic trends and analyze securities to make informed investment decisions.
- Diversification: Diversification is one of the best ways to reduce risk. Mutual Funds offer investors an opportunity to diversify across assets depending on their investment needs.
- Liquidity: Investors can sell their Mutual Fund units on any business day and receive the current market value on their investments within a short time period (in most cases, three to five days).
- Affordability: The minimum initial investment for a Mutual Fund is fairly low for most funds (as low as INR 100 for some schemes).
- Convenience: Most Mutual Funds provide you with the convenience of periodic purchase plans, automatic withdrawal plans, and the automatic reinvestment of dividends. Mutual Funds also provide you with detailed reports and statements that make record-keeping simple.
- Flexibility and variety: You can pick from funds based on market cap like large-cap/mid-cap/small-cap funds, thematic & sectoral funds, or based on risk appetite like aggressive or conservative funds, funds that aim to provide income with modest growth, or those that take big risks in the search for returns. You can even buy hybrid funds with a combination of stocks and bonds in the same fund or Index Funds & ETF’s.
Eligibility criteria for Mutual Funds
To invest in Mutual Funds with us, you should be a KYC compliant customer.
KYC status can be checked from any of the below mentioned websites depending on where you have submitted your KYC application form:
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- CDSL Ventures Ltd. CVL - https://www.cvlkra.com/
- NSE (DotEx International) - https://www.nsekra.com/
- NSDL Database Management Ltd (NDML) - https://kra.ndml.in/
- CAMS - https://camskra.com/Home.aspx
- Karvy - https://www.karvykra.com/
Mutual Funds Offered Through AU Small Finance Bank
At this point of time we offer the various schemes of the following fund houses :
Disclosure Of Mutual Funds’ Commissions
Note :
- AU Bank (AMFI Registered Mutual Funds Distributor) acts as a distributor of mutual funds.
- The initial registration date for ARN-124591 is 23rd June,2017 and the current validity of the ARN is 30th June,2026.
This is on a best effort basis and rates are updated as and when actual rates are received from AMCs and are subject to change without any prior notice.
Customer Satisfaction Survey
Customer Grievance Process:
Contact Helpline – 180012001200 or mail at [email protected]
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MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
