How To Select The Best SIP Plans in India For Students?


How To Select The Best SIP Plans in India For Students?

Before we start, we would like to ask you a simple question!
How many 20 or 22 year olds think about saving and investing? 

If your answer is “Rare” or “Very Few” then you are right. Most people think that they can start investing only after they attain a high paying job or get permanently settled or are old enough. As per financial experts, that is not the best idea! After all, whoever said that a student should not invest?

When an individual becomes a college student, he/she enters the first empowered stage in his/her life cycle. Times are fast changing, and so are finance related notions. Becoming financially independent has its own appeal. Once you enter college, its high time that you move on from taking pocket money from your parents and earn something of your own. 

Evolving life patterns demand adaptable and fresh solutions. If you are a student currently, SIP is a great way of saving for the long run. Now the question is – Which SIP is best in India?

The greatest and best SIP plans in India will allow you to regularly invest small amounts, typically in an equity fund scheme. As a student, you are young and have all the time in the world! You can have a long term investment horizon, for which investing in an SIP is the best option.

If you are someone, who is specifically seeking short term returns then you can invest in short-term debt funds. A lot of students with an investment horizon of three years or less are happier with bank deposits or debt open-ended fund schemes. Note that, debt open-ended fund schemes may offer marginally higher returns than bank deposits. However, as a student, a far better idea would be to set a longer horizon. We will help you in investing in the best SIP plans in India based on your personal circumstances and risk appetite.

Students also can choose between the low Investment SIP options or high ones based on their savings. Top fund houses offer the best SIP Plans in India, from which students can easily benefit. Best part about SIP is that through an SIP, students can strategically put their savings into mutual fund that provide high returns and have manageable risks.

Features of an SIP which makes it an ideal savings option for students are :

  1. Fund Mangement: Professional fund managers of proven expertise manage the allocation of the money of all the investors in various schemes.
  2. Periodic Investing: Investments are often made periodically, every month or week.
  3. Small Amounts: Investing in an SIP require an amount as low as Rs. 500 per month.
  4. Flexibilty: SIPs are flexible and permit investors to pause/stop their investment anytime.
  5. Hassle-free Process: You can start an SIP online with little or no documentation requirement. 

At Sqrrl, we require minimal documentation to finish your registration process. Check how we select the best SIP recommendations for you. Mutual fund schemes tend to possess different objectives. Some aim for stable and balanced returns, whereas others aim for top growth. Students can choose from amongst the best SIP plans in India, that concur with their objectives. For that, the inquiries to be asked are – What do they want of their investments? Is it a stable income? All these questions generally depend on the particular investor’s risk appetite and investment preferences. Moving on, let’s check out the criteria for choosing the best SIP plans for students in India:

1. Annaulized Returns 

The whole point of investing is to generate returns; as high returns as possible! Before you invest you need to see how much returns a fund is capable of generating over a particular time period. Again, keep in mind that you have a certain risk preference, and take care to invest the money in accordance with that. Check the historical performance of the fund to gauge if you should choose it or not.

In this manner, you’ll determine the best SIP plan for students in India by carefully analyzing its annualized returns and performance. Sqrrl helps you in calculating the returns with our inbuilt SIP calculator feature.

2. AMC & Fund Manager Managing Portfolio

Before you invest in an SIP, check out the history of the Asset Management Company (AMC) and the background of the fund manager. You must know that management of the money of the investors is highly important. The best SIP plans are those that have a wise fund manager, allocating all the investor money in important profitable ventures.

Since, the fund is managed either actively or passively by a fund manager, it features a substantial impact on the performance of the fund and your portfolio over time. Check the history, background and experience of the fund manager before investing your money in any fund. It’ll be fair to say that the role of a fund manager is pivotal in either making or breaking your investment.  

3. Risk & Volatility

You want to enter into the SIP portfolio with no risk or less risk. We, at Sqrrl, bring for you the best SIP plans which try to balance out the market volatility with your risk tolerance. Since, risk and returns are directly proportional, so you need to balance your desire for returns against your ability to tolerate risk.

Pick funds that fit your risk tolerance. Say, if you are a risk-averse investor, then investing in funds with a low credit ratings will be unsuitable for you because of the unreliable nature of the funds and the high risk involved.

4. Personal Level Of Comfort 

SIP allows students to plan and invest as per their comfort. The frequency of a SIP can be weekly, monthly, quarterly, as per your choice. Also, what gives investors a cushion of comfort is that SIPs can be initiated, paused or terminated whenever they want, and there are no charges imposed on investors. 

Flexibility is an important  feature of the best SIP plan scheme. If you do not have a sufficient amount in your bank account, the ECS debit instruction will be rejected by the bank, and the investor will miss his SIP instalment for the month. The fund house will not impose any penalty for not paying your installments or cancel your SIP. Isn’t it great for students to be flexible with their SIP installments? In fact, most fund houses have a minimum SIP tenure of 6 months. Students can invest in the best SIP plan schemes for the minimum tenure as per their needs. 

The greatest and the best SIP plans in India for students allow flexibility, comfort, and returns, to the young generation of investors. All these features of SIP plans make it a hot choice for students. Invest in the best SIP plans in India with Sqrrl today.

Written by

Priyanshi Bhardwaj