Investing in mutual funds through a Systematic Investment Plan (SIP) is a smart and disciplined approach to building wealth over time. In the UAE, choosing the best mutual funds for SIP can help you achieve your financial goals, whether you are saving for retirement, a child's education, or simply ...read more
Want to invest in mutual funds but don’t wish to put a large sum at a time?
Systematic Investment Plans or SIPs, highly popular among investors, can be the ideal solution for this. Instead of putting all your money in a mutual fund, you can invest in small amounts at regular intervals. However, considering the vast number of SIP options available in both the UAE and outside, it becomes essential to understand how to invest in SIP.
Some of the best Investment quotes in UAE & Dubai are:
Before understanding how to invest in SIP, let’s quickly understand how this investment instrument works.
When you start an SIP, a fixed amount of money is automatically deducted from your registered bank account. The frequency of SIP can be monthly, quarterly, half-yearly, or yearly.
This amount is invested by a mutual fund company in a fund periodically.
With the top banks in the UAE, you can easily invest in both local and global mutual funds via SIP. Here’s how to invest in SIP in UAE —
Whether you are new and want to know how to start SIP or already familiar and simply looking for how to invest SIP, Policybazaar.ae makes the process smooth and digital.
Just a heads-up: Some documents may be required during the application process such as Emirates ID, proof of income etc.
While the UAE has plenty of mutual fund options, you can also invest in any other country’s market as per your goals. In this case, you will need to check the specific requirements of the concerned area.
For Indian Mutual Funds:
For investing in India, here’s how the process goes —
While it’s important to know how to invest in SIP in UAE, it’s also crucial to be aware of some more factors to get the most out of your investment.
SIPs are usually taken for a long time frame. While they can generate significant wealth over time, they may not give high returns in the short run. Thus, it is recommended to commit to an SIP only if you are looking to invest for 5-10 years or more.
Important: To visualise your potential returns, you can check the previous returns* of your chosen SIP and enter the details in an SIP calculator.
After selecting a mutual fund company to invest with, you can submit an application to create an account to start investing in mutual funds via SIPs online.
Yes, you can invest in SIPs online. Most mutual fund companies provide the option for investments online and via mobile apps as well.
This amount depends on your future goals, current income, and how much money you can set aside for long-term wealth creation after considering regular expenses.