I believe that any investment done systematically should be termed as a systematic investment plan. However, the term systematic investment plan is mostly understood as systematically investing a fixed amount of money in your favorite funds.
So how does one start a systematic investment plan in funds? While there is a lot of information available on what is an SIP, I am still confused about how to start one. I am looking for the steps that one should follow to start an SIP. Something on the lines of :
- What are the different types of funds that you can add to your SIP.
- How to choose funds?
- What to do once you have chosen your funds? Do you go to some website and select the funds and how much money to put in each fund each month and then link your bank account to the website so money is automatically invested each month?
The above steps are just an example of what kind of information I am looking for. Feel free to add more steps/information as you please.