SYSTEMATIC INVESTMENT PLAN: HOW TO START SIP ONLINE

With the new financial year being around the corner, several investors wish to begin a chapter for their investments. If you are new to the investing world, then mutual funds might be the best bet for you. These investment vehicles pool the money of several investors to meet the fund’s collective objectives. You can invest in mutual funds via the SIP (Systematic Investment Plan) way or lumpsum way. Though an investor should analyze their investment goals and accordingly choose the right investment avenue for them, most experts recommend going the SIP way. The reason is simple. SIP investments promote disciplined investing among investors. A SIP is a desired investment tool for all the right reasons. Before we understand how to invest in SIP online, let’s quickly what a SIP is.

What is SIP?

SIP is a systematic and disciplined method of investing in mutual funds. Under SIP investment, a pre-determined sum of money is periodically debited from an investor’s account for a defined period of time and credited in desired mutual fund schemes on a regular basis. As an investor, you can invest as low as Rs 100 in your desired mutual fund schemes via SIP mode.

However, several investors looking to invest in SIP  dread the time-consuming and mentally challenging paperwork. For such investors, there is an option to invest in SIP online and reap all the benefits of mutual funds with just a few clicks. Let’s understand how to start SIP online.

How to start to SIP online?

If you wish to begin your investment journey online via SIP mode, follow these simple steps:

  1. Before you invest in mutual funds via SIP, make sure that you have your address proof, PAN (Permanent Address Number) card, a passport size photo, and checkbook in place.
  2. Comply with the KYC (know your customer) compliance by providing the required documents
  3. Once you are done with KYC formalities, head over to the website of the fund house and select the desired SIP scheme
  4. Click on the CTA button (it could register now, invest now, etc) and register a new account
  5. You will be led to a new page that contains an application form. This form would ask for personal details and bank details. Duly fill it and submit the form
  6. Choose a username and create a strong password for your investment account. Voila, your account is created
  7. Log in using your username and password and select the SIP schemes you wish to invest in
  8. On completion of the registration and confirmation by the fund house, you can begin your investment journey in mutual fund investments via SIP mode

As you can clearly understand that investing in mutual funds online via SIP is quite a hassle-free process. So, what are you waiting for? Start investing in SIP today and achieve your goals quickly. Most fund houses also provide the feature of SIP calculators that does complex calculations and evaluates the future value of your investments. You can use that to understand the monthly investment amount needed to achieve a particular corpus. Happy investing!

Leave a Reply

Your email address will not be published. Required fields are marked *