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How can you start investing in SIP?

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How can you start investing in SIP?

There are so many investment plans these days to choose from. You can come across the best ones once you explore a little. It is true that mutual funds are very popular in the present era. But if you are new to this world of investment then you must start with SIP. A systematic investment plan is the best choice these days for long term investment.

It is important to know that fulfilling KYC requirement by submitting an address proof, identity proof and a photograph is a must for mutual fund investments. You can finish all these needs electronically through eKYC. The cool thing about this investment is that it is convenient and easy, blend with the inflation-beating returns from equity funds. This is certainly a productive way to grow surplus income and savings to attain your financial goals. As a newbie or novice, you may be wondering about How to start sip and in this post, you can get to know about it.

In a broad sense, there are two ways to begin with SIP: offline and online.

But before you start on the journey of investing in mutual funds, you require finishing your KYC (Know Your Customer) formalities. KYC is a precondition for investing in mutual fund SIPs (and nearly all financial instruments). It is important compliance on the part of financial product manufacturers, to know the investor better.

How to begin SIP Offline

  • To begin SIP offline is a traditional mode of investing.
  • Select a mutual fund scheme that finest suits your requirements, investment objectives, financial aims
  • Fill in the Common Application Form  or SIP form carefully and completely mentioning the name of your scheme and other details
  • Cater your NACH mandate form giving a mention of all your SIP details
  • In case KYC is not done then you have to fill in the KYC form and comply with it
  • Hand over the forms (as mentioned above) to that of the office of mutual fund distributor/relationship manager/agent/ investment adviser / Certified Financial Guardian, or you can also directly submit to Registrar and Transfer Agents (RTAs or  AMC.

How to begin SIP online?

You can purchase and sell mutual funds units online, just like you purchase a dress online. Have a quick look at different platforms that facilitate online investing:

Asset Management Company sites

You could purchase SIP online by investing in mutual fund schemes directly via the online portal of the Asset Management Company.  However, in case you have multiple SIPs, then you require registering and investing in every fund house individually. Certainly, this is an inconvenience in case you choose to have a number of plans from different fund houses. So, pick your investments with proper diligence.

Registrar & Transfer Agent (R&TA) 

The registrars also enable SIP investment online; however, the investment shall be restricted to the mutual funds registered with them.

Conclusion

Thus, the point is there are different ways that you can start SIP. You must decide first you want it online or off-line!

Joel Borthwick is basically from Australia but is keen to explore everything under the sun. He is a part-time blogger, well acclaimed for his blogs on topics like - home improvement, business, lifestyle, health, travel and fashion. He aims to solve day-to-day problems of people through his blogs.

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