Extending Your Mutual Fund SIP Investment for Long-Term Benefits
Your investment in mutual fund SIP schemes has brought you steady returns over the past 3 years. However, as you consider extending your investment period, it's important to understand the options available to you. This article will guide you through the process of extending your SIP, increasing your investment amount, and starting new SIPs for long-term growth.
Request Extension Before Your Term Ends
Extending the period of your SIP is a commendable decision for several reasons. It allows you to take advantage of the power of compounding and potentially increase your return on investment. However, it's crucial to approach your fund house well before your current term ends. This ensures that your request is processed on time without any delays. You can typically do this by contacting the fund house either through email or telephone. Most fund houses will be willing to accommodate your request if given enough notice.
Increasing Your SIP Amount
Increasing your SIP amount is another significant step that can boost your investment returns. Many online platforms and brokers, such as Sharekhan, ICICI Direct, HDFC Securities, and Kotak, offer a simple process to increase your SIP amount. You can usually do this through their online interfaces.
Starting New SIPs or Extending Existing SIPs
If you want to start a new SIP or extend your existing SIP, there are various options available. You can initiate a new SIP by visiting the office of Karvy or CAMS or applying online through the respective mutual fund's website. For those who have chosen to invest through brokers, there are additional steps you can take to manage your SIPs effectively.
To start a new SIP and increase the investment amount immediately, you can set up a fresh SIP right from the next month of your current SIP's ending. Alternatively, if you prefer to extend your existing SIP, you can contact your mutual fund house directly. Most mutual fund houses allow you to adjust the terms of your SIP, including the tenure and amount.
Choosing the Right Option for Long-Term Growth
Another strategy to consider is registering for a SIP with a perpetual option. This allows you to invest indefinitely without a fixed maturity date. When you set up such an SIP, simply tick the 'PERPETUAL' option during the application process and leave the investment period unspecified. This approach is particularly beneficial in open-ended schemes, as you can make regular investments and withdrawals as needed. For existing SIPs, you can choose to wait until they expire and then register for new SIPs with the perpetual option.
By taking a strategic approach to extending your SIP investments, you can build a robust long-term financial plan. Whether you choose to extend your current SIP, start a new one, or opt for a perpetual SIP, the key is to act proactively and consult with your fund house for the best guidance.