What is SIP | Everything about Systematic investment plan

What if I told you, "You keep investing at the rate of 1,000 to 3,000 rupees per month, and after a certain period of time, you will have more than a crore rupee with you.

Do you want to make such an investment?
If you want then, This system has been in Nepal since the last 2 years.

This system already exists abroad. This system is called SIP which means Systematic Investment Plan.

What is this plan?

Who will carry out this plan?

What are the benefits of this plan?

How long should this plan have done?

And who should do it? And from where?

So, let's get right into the video. SIP stands for Systematic Investment Plan. This is a mutual fund plan.

This SIP, i.e., Systematic Investment Plan, is not listed in the NEPSE.

This is an open-ended mutual fund. There are currently only four mutual funds in Nepal.

So, SIP is only possible in open-ended mutual funds because
it is for a very long period of time. closed-ended mutual funds have a definite date and it expires,
whereas open-ended mutual funds do not.

Close-ended mutual fund is traded on your NEPSE. You can buy and sell using your TMS (Trade Management System)

The Capital, which launched open-ended mutual funds, is the only place where they are traded, and you can open it anytime.
It extends up to your lifetime.

So, that's the the benefit of an open-ended mutual fund.
There is no such expiry date.

So, You can invest here for 10 - 40 years. So, the things happens in SIP, Its specialty are,

By the name, Systematic Investment Plan, that means Its plan to run on any system by making your own investment.

The thing happens in the system is, there's a fixed time.

So, when do you invest?

In term investment, there is an amount, Consider the system to be time, and the investment to be amount.

So, it has a fixed time and a fixed amount. After these, you have to invest your money in a systematic way
every month,
every quarter (3 months)
every half-year (six months),
or every year.

Firstly, you can choose among these four investing periods and
then you need to know a fixed amount You need to figure out that
You'll invest either Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, or Rs.5,000.

You can invest here limitlessly. But you have to do it regularly.
This will develop your investing and saving habits.

If you have done it monthly, you have to do it every month.
If you have done it annually, you have invested a lump sum every year.

If you haven't done it semi-annually, you have to invest in it every 6–6 months. or you have to invest it in 3–3 months

So, this is how a systematic investment plan works, doesn’t it?

Because it grows by adding a set amount at a specific time.
So. the thing to purchase in SIP, in context of mutual funds, we purchase units of mutual fund.

For example, as in the share market we buy a unit of stocks,
In mutual funds, we purchase units of mutual fund. Price to be determined in the share market is last traded price.

Similarly, in mutual funds, it comes as NAV Value
Net Asset Value (NAV) that means, Reduce total liabilities from your total assets and then divide it with no. of units

The resultant figure is NAV (Net Asset Value)
We can purchase and sell mutual funds since we always observe their NAV value.

So, every time you do SIPs of 1000, 2000, or 3000
you purchase units of a mutual fund according to its NAV value
NAV value fluctuates.

When does the NAV value of a mutual fund increase?
It increases when market is up because mutual funds also invest in equity or debt. 

When market is up the value of equity also rises.
NAV value thus rises when the market is up and falls when the market is down What is the value of your NAV in thousands of rupees?

Sometimes, It worth 10,11,12, 13 units. When its value increases, you'll get less units. When its value decreases, you'll get more units.

As we talked in the previous article, average concept So, it also does the same thus, you don't have any concern about the market's growth or decline.

According to your discipline, you must invest a particular amount every month. In that case, whether the market rises or falls,
everything will balance out and be beneficial in the long run.

So, this is how systematic investment plan works.

This is the right opportunity to do Systematic Investment Plan now.
It is already a very popular concept all over the world. 

Its new concept in Nepal because as there wasn't open-ended mutual fund there wasn't chance of SIP's existence.

Starting SIP during a bear market is a good idea, and this is your chance.

We have four such open-ended mutual funds in Nepal now. They are:

1. First, NIBL Sahabhagita Fund (NIBLSF)
2. Next, NIC Asia Dynamic Debt Fund (NADDF)
3. Next, Siddhartha Systematic Investment Scheme (SSIS)
4. NMB Saral Bachat Fund.

So, these four capitals have started open-ended mutual funds
In all these four, we can register us online.

Earlier, we talked about things that happens in SIP. Fixed amount and a fixed date. Isn't it?

Then let's assume I am ready to do SIP, I know that I will invest that amount on that date.

The things required for SIP are:

-Bank A/C
-Mero Share A/C
and DEMAT A/C
That's it.

If these three are available with you then you can start SIP from today.

Either you fare Nepal or outside, even if your bank has been linked through Connect IPS or Esewa you can start SIP from anywhere.
You don’t have to be in Nepal.

Let's see how we can do this online.
Website we have to visit for SIP is,
If you want to do it from NIBL, then the website is NIBL Ace Capital. Isn't it?

Today's NAV value shown here, Its 11.09.
If you want to do it from Siddartha,  then go to the website of Siddartha Capital.

From Here.

Else if you want ro do it from NMB, you can go to the website of NMB Capital

Here.
and if it is from NIC, then you can visit website of Capital of NIC Asia

From Here.
All you have to do is, invest in a mutual fund
Here, It's a mutual fund of Nepal Investment Bank.
SIP plan...
So, In online it's 'NIBL Sahabhagita Fund'
Click on it.

These appears here after clicking on it.

Unit Purchase,
SIP Registration,
SIP Payment,
Dividend Re-Investment,
Signup,
Login
You have to come to this window for any capital.

Do register.

After completing this SIP registration,
you must pay your first amount through Connect IPS or eSewa.
Either Rs.1,000, Rs.2,000, Rs.3,000 or more.
It's not required to invest more.
Invest at least 1,000 rupees, and if you can, up to 3,000, 5,000, or as much as you can.
Between 1,000 and 5,000 is the only range which you invest.

It will be difficult to maintain if you invest too much. This is a habit.

So, It's convenient to invest between 1,000 and 5,000 and it's feasible too.
It must constantly be done and provides benefits too. After doing that SIP registration and funding first amount You will receive an email within 24 hours,
Once your SIP has been registered, you will receive an email notification.

A receipt for the unit purchase and your login information are also included,
After receiving login details,
login again in the previous interface
Enter your username and password to login
and then you'll see all of your details there.

Earning Calculator SIP

To have tentative idea of our earning,
Here, every capital have SIP Calculator So, select your time interval,
If monthly then,

Lets assume, Rs. 2000 per month.

And how much is the expected annual return?
When the share market rises, the return is more.
I think this NIBL capital returned 40% or 50% last year
However, that doesn't always happen. However, it was a very strong bull market.

It could therefore be reduced during a bear market.
In average,

You can expect a higher return in SIIP than a fixed deposit
because mutual funds are pretty safe, It's managed well. So, you can expect 12–18%

In the scenario of Nepal, I think that's a return possible.

Therefore, let's use an average rate of 18% to persuade you to SIP
18% interest at a rate of Rs. 2000

What number of years?

Do not invest in SIP if you are doing it for less than 10 or 15 years.
It's for the long term.
It will become effective after 15, 20, or 25 years,
and your interest will steadily increase.
So,
Start saving early so that a good chunk of money will be available for your retirement plan.
If you are planning to invest for more than 15 or 20 years, then only you should do SIP.
Its a good discipline too. else SIP is not really beneficial.
OK !
So, Lets take 20 years,

See the expected amount in 20 years. The investment is 4 lakhs 80 thousand rupees And the return is 46 lakhs rupees.

If you invested 4 lakhs 80 thousand rupees you will get 46 lakhs rupees in return.

You will be surprised by the amount if you invested for only 25 years. Above crore of rupees may be returned. While investment is only of 6 lakhs rupees.

Investment of Rs 6 lakhs will return you Rs 11646624,
Even if we are pessimistic, at least 15% of the interest will be given instead of 18%.

65 lakhs rupees will be returned if you invested at Rs 2000 monthly at 15% interest. Investment of 6 lakhs rupees at the 15% rate of intrest

If you invested 30 years than 25 years then, If you started SIP when you were 20 years old

Till you turn 50, then 1 crore 40 lakhs rupees will be in your hands
This is for those who make long-term plans, especially students.

If you have been preparing for life after SLC
for a while, you may have the money to launch a business in 15 or 16 years.

When you turn 30 or 35, you can stop worrying about how much cash you'll need to launch your business.

It can make you enough wealthy with a Rs 1,000 or Rs 2,000 investment.
so, you launch your own business. And I've received inquiries about some of the useful information from SIP.

Can we stay it whenever we want to?

-Yes

Can we cancel it whenever we want to?

-Yes

Can the amount be changed at any time?

-Yes
Yes, it's all possible.

Is it possible to cancel in the middle and receive your money back?

-Yes

If you want to invest for the long term but lack information,
are still a student, or are just getting started in the share market,
You can invest here as well after that.

You only spend Rs.1000 or Rs.2000 in a cafe. It would play a very significant role in your future if you invested that amount.

Now consider those who have minimal knowledge of the share market and don't need to invest for 15 or 20 years.

Even if you want to obtain a good return in 8 years, 9 years, or 7 years,
the best thing to do is SIP. But not this SIP.

Sip is just a term for
"Systematic Investment Plan" that you can do yourself in your life.
If you have knowledge of share market, Instead of doing SIP in mutual funds

You, Yourself Purchase stock in a company on your own and continue to do so whether its value increases or decreases.

So, this is a SIP on stock No one will bother you here.
In mutual funds,

You will also receive a reminder and be managed by a mutual fund manager.

NAV Value also fluctuates here. Else if you have the ability to green yourself. then invest in stocks.

Invest in stocks of fundamentally strong companies that pay out a good dividend and have decent growth every year.

They are blue-chip companies. This type of company has to be identified, and you have to invest your money regularly in a systematic way.

Then, you will be doing SIP on stocks
In just 5, 8, or 10 years, it will provide you with a bigger profit than this SIP in short period. If you buy same stocks for 5, 8, or 10 years and do SIP on stocks.

Purchase just a stock. and continue to do so whether its value increases or decreases. There shouldn't be 5 ,6, or 7 stocks.

There can be a maximum of two of the stocks you've to identify
For diversifying your investment, if you purchase only those two stocks and continue to do so whether its value increases or decreases.

You shouldn't have any concern with the market Don't care whether it rises or fall. From your salary, separate certain percentage to buy a stock.

Purchase anyway either it rises or fall. It automatically averages out and the power of compounding works there, accumulating the dividend gained from there,

You don't need to hold for 10 or more years In 50% less time period than SIP the probability of good returns from there is high.

The most important thing is whether you do SIP on stocks or on mutual funds.

The right time is now.
Because of the bear market,
if you have been accumulating up your investment, it is certain that you will become a billionaire within a few years.