Open SIP Account Online in Simple Steps
Systematic Investment Plan, commonly referred to as an SIP, allows you to invest regularly as fixed sum in your favourite mutual fund scheme. Mutual fund experts believe that SIP is the best way to invest periodically in the market. In SIP, a fixed pre-determined amount is deducted from your savings account as per your selection of interval it can be every week, every month, every quarterly etc and and invested into a specific mutual fund scheme selected by you. You are allocated certain number of units based on the ongoing market rate called NAV or net asset value for the day.
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Every time you invest money units will be added to your account accordingly to the current market rate. SIP is a automatic market timing mechanism, It forces you to buy more units when the price is down and fewer units when price is up automatically.
Documents you have to provide to open SIP Account are:
- PAN Card
- Address Proof (Driving License/Bank Statement/Utility Bill)
- A Cheque book leaf (It is used for bank details)
- Passport size Photograph
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Below are the steps to create online SIP account
Step 1 : Get your KYC done
To do eKYC Keep the above mentioned document softcopy handy. The first step is to get the Know Your Customer(KYC)completed. To get you KYC done, open google and type "how to do ekyc in india" and then multiple options will get displayed. Then log onto the website of any fund house of your choice and provide the details, such as soft copy of PAN card and Address proof. This is a one time activity and after that you can invest in any mutual fund in India online/offline.
Step 2 : Start your SIP online
Once your KYC is done successfully. You can visit the the website of the fund house you want to invest. Search for a ‘Register Now’ or a ‘New Investor’ link. Click on the link and fill the simple form with your basic details and choose username and password accordingly to perform transaction online. It will also ask you to enter your bank account details so the debit (money would be debited from your account as per your selected interval) and redemption process (when you redeem your SIP then money will be credited in your account) would be done accordingly in the provided account.
Simply logged in with your username and password and select the scheme you wish to invest in. You can choose any date for your SIPs investment accordingly as per your convenience.
If you are thinking, where to invest
then take your time and wisely take the decision after checking the past few year's performance of the funds then choose the best one.