SIP in JM
Investing through Systematic Investment Plan (SIP) facility empowers you to plan and save for your future by inculcating in you a disciplined habit of investing regularly that brings you closer to achieving your financial objectives.

The benefits of investing in SIP are -
Regular Investment
Systematic Investment Plan is, as the name suggests, regular investment where you invest fixed amounts every month in any of the funds. SIP is a means of investing in a disciplined manner irrespective of the state of the market.

Power of Rupee Cost Averaging
SIP works on the principle of "Rupee Cost Averaging" wherein you invest a fixed amount every month, irrespective of the market movements. In this way, you would buy more units when the market is bearish and take advantage of higher appreciation when the market moves up. Thus, your Average Cost per Unit works out lesser than the Average Price per Unit. Let us look at this more closely through an example.

Months Amount Invested (Rs.) Purchase Price (Rs.) Units Purchased
1 1,000 10 100.00
2 1,000 9 111.11
3 1,000 10 100.00
4 1,000 11 90.90
Average Cost per unit comes to be Rs. 9.95

SIPs work better, as opposed to one-time investing. This is because of rupee-cost averaging, where an investor typically buys more mutual fund units when prices are low. On the other hand, he will buy fewer mutual fund units when prices are high.

Power of Compounding
The early investor accumulates greater wealth vis-à-vis the investor who comes in later. This is mainly due to a thumb rule of finance called the "Power of Compounding Returns"

As shown in the illustration below, if one starts investing Rs.1,000/- per month at an 8% annual return from the age of 25, then by the age of 60, one would have accumulated Rs. 23,09,175/-. But if one starts investing only from the age of 30, then at age 60, one would accumulate only Rs.15,00,295/-. A headstart of only 5 years results in a 54% larger investment corpus.

Age at entry No. of years of investment Total amount saved (Rs) Value at age 60 (Rs)
25 35 4,20,000 23,09,175
30 30 3,60,000 15,00,295
35 25 3,00,000 9,57,367
Lower Minimum Investment
If you make a one-time investment in a mutual fund scheme, the minimum amount that you have to invest is Rs. 5,000/-. Alternatively, if you invest via an SIP, the amount drops to as low as Rs. 500/- per month.

Convenience / Ease of Investing
It is very easy to invest in SIPs. All you have to do is visit the JM Financial Mutual Fund office in your city. Alternatively, you can approach any office of Karvy Computershare - our registrar and transfer agents, or an AMFI certified Financial Consultant.

SIPs can be operated by simply providing post-dated cheques with the completed enrolment form or by giving ECS instructions. The cheques can be banked on the specified dates and the units credited into the investor's account.

If the market volatility gives you the jitters, just take advantage of JM Financial Mutual Fund's SIPs.
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How to invest?

  • Select JM Financial Mutual Fund Schemes of your Choice:
    Under the JM Financial Systematic Investment Plan, you can choose from a range of equity and debt schemes which offer SIP.
  • Investment Periodicity:
    You can choose to make your investment on a monthly or quarterly basis.
  • Minimum Investment Amount:
    Monthly SIP Option - 12 instalments of Rs. 500/- each or 6 instalments of Rs.  1,000/- each.
    Quarterly SIP Option - 2 instalments of Rs. 3000/- each
  • Investment Method:
    SIP can be done through
    • ECS Debit facility with certain banks participating in local clearing in those locations where ECS facility is available.
    • Direct Debit facility with certain banks and for which the AMC has made arrangements.
    • Standing Instruction Form of HDFC Bank for HDFC Bank account holders.
    • Alternatively, the investor may submit post-dated cheques drawn on any city in India subject to the first cheque/DD being payable at the location of Point of Acceptance where the SIP request is being submitted.
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