How To Select The Best SIP Investment App?

One of the most popular ways to build your wealth or begin your journey of personal finance is through investing in mutual funds and more specifically, SIPs. With a large number of platforms available nowadays, investing in mutual funds has never been easier. However, choosing the best investment app for yourself is crucial.

The best SIP investment apps let you track, manage all of your investments from one location, and also provide additional features like a SIP calculator, tax savings options, asset allocation, and diversification.

In this article, let’s explore how to select the best SIP investment app, focusing on factors like investment style, fee, viable options, security, features and more!

Systematic Investment Plan

A systematic Investment Plan commonly referred to as SIP is a systematic way to invest your money at a regular interval. Whether you do it, monthly, quarterly, or semi-annually, SIPs are a great way to meet financial goals. It is the most common investment tool for people who are just starting on their personal finance journey.

But, why should you invest in a SIP?

No rigorous planning required
Flexible payment options- weekly, monthly, quarterly, or semi-annually
Power of compounding
Rupee cost averaging
A step towards financial freedom

Choosing The Best SIP Investment App

Now that we know what a SIP is and why you should invest in it, it’s time to choose the best SIP investment app. So the most important question now is- How to select the best SIP investment app?

You can start by answering a few questions:

What is your style of investment or what type of investor are you?
What fees are you willing to pay?
What are some of the features you’re looking for in a SIP investment app?
Have you done your research or are willing to learn more as you invest?

The answer to these questions will lead you to the best SIP investment app that will suit your needs. Let’s understand how.

Table of Contents

Investment Style

To answer the question- What is your style of investment or what type of investor are you, it is important to know the two types of investors-

Active-Investors

Active investors are those who apply the do-it-yourself or DIY process in investing.

Passive Investors

Investors who don’t actively manage their portfolios often rely on investment platforms that perform the job for them.

So, if you are a passive investor, you must look for automated investment platforms. In this aspect, platforms with online auditors can be especially helpful for you. This is due to the fact that professional auditors will examine your present investments and propose the best course of action for your portfolio.

It is important to note that the two investment approaches are not mutually exclusive. There are many investing platforms that are a blend of both.

Fees

Another deciding factor for the best SIP investment app is the fees it charges. Some platforms offer to charge a minimum fee depending on your investment amount, while others have fixed rates. And on the other hand, some do not charge fees at all. For instance, Scripbox does not have any fees or hidden charges.

Investment Options

Most investment platforms offer a large number of investment options, divided into various categories, such as:

Depending on your goals (child’s education, dream planner, retirement fund, etc.)
Depending on the type of fund, like debt fund, liquid fund, ELSS fund, hybrid fund, and others.
Wealth plans such as emergency funds, tax-saving plans, goal-based plans, etc.
Top-performing AMCs, like SBI Mutual Funds, Axis Mutual Funds, HDFC Mutual Funds, and many more.

Once you have your investment objective clear, you can choose the investment app that is in line with your investment approach.

Features

The best SIP investment app will have all the features that you’re looking for in an automated investment platform. Apart from ease of use, it should allow you to calculate your returns and plan your investments using investment tools like the SIP calculator. If your investment app has a designated SIP calculator, it will help you estimate your returns from your investment.

Apart from that, it must also suggest tax savings measures and ways to diversify your funds.

Security

If you choose an investment platform, you must want it to have a secure and transparent security system, right? The best thing to do is selecting an investment app where your money moves directly from your bank account to the SIP funds account. Not just that, it must also store your investment records electronically and give you regular updates on your investment portfolio.

Research

Now that you know how much you’re willing to invest, the type of investment option you’re looking for, and the fees you might have to pay, you can narrow down the options that best suit your needs.

The Bottom Line

As the name suggests, SIPs are a systematic way of investment. But among a large number of SIP investment apps available in the market, all claiming to be the best SIP investment app, choosing the one that will suit your goals and needs can be a little complex. All the aspects mentioned above will help you narrow down your choices and select the best one that is right for you.

And lastly, but most importantly- mutual funds are subjected to market risks. It is always recommended to do your own research before investing in any market-related fund.

FAQs: How To Select The Best SIP Investment App

What is a SIP?

How can one benefit from a SIP?
No rigorous planning required
Flexible payment options- weekly, monthly, quarterly, or semi-annually
Power of compounding
Rupee cost averaging
A step towards financial freedom

What should a passive investor look for in an investment app?

Investors who don’t actively manage their portfolios often rely on investment platforms that perform the job for them. So, if you are a passive investor, you must look for automated investment platforms. In this aspect, platforms with online auditors can be especially helpful for you. This is due to the fact that professional auditors will examine your present investments and propose the best course of action for your portfolio.

What features should I look for in an investment app?