SIP or Systematic Investment Plan is an investment option where you invest a fixed amount in a mutual fund at regular intervals. The amount can be deducted weekly, monthly or at some other frequency as is available. Open a SIP Account Online to reduce paperwork and develop a disciplined investment habit. You can also monitor payments and fund units online.
Let’s first clear that a SIP is an investment strategy not an additional bank account. Results will vary depending on the mutual fund and market conditions.
What you need before you start
Keep your PAN, mobile number, email address, bank details and identity and address documents handy. You may also need to provide a clear photograph, your signature and a cancelled cheque or proof of bank account.
In India, you have to KYC to invest in mutual funds . The platform can validate your KYC through a KYC Registration Agency if it is already valid. New investors will have to do Digital KYC (OTP, Upload Documents, Video Verification)
How do I open a SIP account online?
- Select a registered platform
Select any one of the mutual fund websites, stockbroker websites or Demat App providing SIP services. Check the registration details, fees, security measures, help resources and fund types.
Not all Mutual Fund SIPs will require a Demat account. Some platforms have units within a mutual fund folio. An option of demat holding of units is also available with the broker.
- Register your essential information
Please enter your Name as per PAN, Mobile Number, Email ID and DOB. Create a strong password. OTP Verification for Mobile Number and Email Don’t register over public Wi-Fi.
- Complete KYC
Submit PAN and proof of Identity & Address. Complete eKYC or video KYC as per instructions on the screen.
The name on your PAN, Bank account and SIP application should be the same. If there is a mismatch it can cause a delay to the verification process.
- Enter your bank account information
Enter the bank account from where your SIP installments will be debited. If required upload bank proof. To verify the account, the platform can do a small transfer, either via online banking or any other digital means.
- Define your goal and risk appetite
Know why you’re investing and for how long you want to invest. Choose an amount that won’t impact your rent, bills, loan payments or emergency savings.
Check the scheme’s risk-o-meter, investment objective, asset allocation, expense ratio, exit load and tax rules. Past performance is not indicative of future results.
- Pick a mutual fund scheme
Filter on equity, debt, hybrid, index or other fund types on website or Demat App. Compare funds from the same category.
Please read the Scheme Information Document and the Fund Factsheet before investing. 2. Check whether the plan is direct or normal. And also check if it has a growth or payout option.
- Enter SIP information
Choose the SIP amount, date of payment, frequency and start date. The minimum installment can vary for different schemes.
Pick a date after you get your regular income credited. This can help ensure that there’s enough in the bank account to cover the debit.
- Payment order approval
Configure an e-mandate through UPI AutoPay, net banking or any of the other options offered on the platform. Approve only after checking validity & mandate limit.
The SIP will start as soon as the request is accepted by the bank and fund house.
- Save Confirmation
Download transaction confirmation, folio number, account statement, mandate details, Make sure that the payment is done and the units of the mutual fund are allotted.
Review the SIP as per scheduled time. Don’t change your plan because markets are moving every day.
Steps to Purchase SIP in Bajaj Broking
If you want to Open SIP Account Online through broker platform, you can consider Bajaj Broking. Its website and Demat App allows you to access mutual funds, SIP tools and track your portfolio at one place.
It claims to have 4,000+ mutual fund schemes on the platform. You can start SIP investment with Rs 100 in the schemes which are eligible. Investors should still research each fund, including cost, risks, investment style and plan type before placing an order.
Top Mistakes to Avoid
Avoid selecting a Fund on its past performance alone. “Don’t pick an instalment that could cause bank failures again.
Please confirm your bank mandate, nominee, contact details and KYC status. Never share passwords, OTPs or access to your screen with unknown callers.“Use only official apps and sites.
Conclusion
Open a SIP Account Prepare your documents Finish your KYC Look at your bank account. Please review the fund and sign e-mandate.
Demat App can make registration, payment and tracking simple. But SIP investing is not only through a demat account. A disciplined investment process can be underpinned by a clear goal, suitable instalment and regular review.
Sources
- SEBI Investor KYC:
https://investor.sebi.gov.in/kyc.html - AMFI KYC:
https://www.amfiindia.com/kyc - AMFI SIP Guide:
https://www.mutualfundssahihai.com/en/what-is-sip - Bajaj Broking Mutual Funds:
https://www.bajajbroking.in/mutual-funds - Bajaj Broking App:
https://www.bajajbroking.in/trading-app
