SIP or Systematic Investment Plan has become very popular amongst mutual fund investors. But, a considerable amount of people are still confused regarding SIP as they don’t know what a SIP actually is? Even, some individuals don’t know how to invest in SIP online.
SIPs are actually simpler mechanisms for investments and this helps in investing regularly. As per your choice, you can invest in a SIP including daily, weekly, monthly, quarterly among others. Mostly, investment advisors request investors to invest in the equity mutual funds only with the help of SIP because it helps them average their purchase cost in addition to maximizing their returns.
Given below are three simple steps through which you can start investing in a SIP:
Get essential documents: All you need is just a handful of essential documents including a PAN card, a passport size photograph, an address proof, and a checkbook. The purpose of checkbook is to give your bank details. If you have your Aadhaar number, the entire procedure will become a lot simpler without a doubt. The entire procedure is now possible to complete online if you have a computer with a decent internet connection.
Adhere to all KYC requirements: You should always supply all documents pertaining to KYC (Know Your Customer) if you are thinking of making mutual fund investments. Investors must provide basic information such as name, DOB, address, contact number etc. You can turn out to be KYC compliant online through e-KYC channel being offered by many fund houses.
Invest in a SIP online: Once you became a KYC compliant, you will visit the website of a fund house where you would like to invest. Click a “New Investor” or “Register Now” link, which directs you to the page in which you have to fill a simple form using your basic details. You will receive a username and password, which can be used later to log in while investing your funds.
