SIP Day or day of SIP refers to the day on which an individual invests a fixed amount of money in a mutual fund or any other investment scheme regularly (monthly, quarterly, etc.). This helps create a disciplined investment approach and build wealth over time.
The day of SIP is the date of every month on which your SIP installments will be paid. Every month on this date money gets auto-debited from your account if you have set the instructions for auto investment.
Here are the general guidelines for choosing the SIP (Systematic Investment Plan) day-
Choose a SIP day that coincides with your payday, so you can invest a fixed amount every month without worrying about running out of money.
Choose a day when you have sufficient funds in your account to invest.
If you believe the stock market is volatile, you may choose a day closer to the end of the month when the market tends to be more stable.
Choose a SIP day that works for your schedule so you don’t forget to invest.
If you are unsure about which day to choose, consider speaking with a financial advisor who can provide you with guidance on the best option for your specific circumstances.
Every mutual fund has a set of allowed SIP dates. You can choose any date from the available dates. For e.g, you started SIP on May 10th. And the next available dates are 1, 7, 15, 21, and 28 for a Mutual fund. Then your next SIP date can be June 15, June 21, June 28, July 1, or July 7.
To sum it up there must be a minimum of 30 days gap from the first installment to the next installment.
Once you have chosen the day of SIP and made the first installment payment, you are just one step away from automating your future SIP installments.
Go to your bank’s net banking and add BSE (under Mutual Funds) as the BILLER in your bank account for automating monthly investments.
SIP is an investment strategy where an individual invests a small amount of money regularly, instead of investing a large amount at once.
The Day of SIP is usually set by the individual, who decides on a particular date of every month when the investment should be made. This helps to overcome the problem of market timing and reduces the risk of investing large amounts at once.