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Investing in SIP is one of the most productive ways to multiply surplus income and savings to achieve your financial goals. Once you decide on which mutual fund you want to invest in, the question then arises of how to start the investment?
“Broadly, there are two ways to start with SIP, offline and online. But before you embark on the journey of investing in mutual funds, you need to complete your KYC (know your customer) formalities. KYC is essential for investing in mutual fund SIPs (and almost all financial instruments). It is vital compliance on the part of financial product manufacturers, to know their investor better.’’ says Kshitiz Mahajan of Complete circle consultant.
How To Start SIP Online?
In this fast-growing digital era, investors may find it easy to open a SIP account online from the comfort of their homes. Having online banking is essential for this.
– Complete your KYC through any AMC website or RTA website which provides eKYC facility by uploading the soft copy of required documents. A video call will be taken for IPV (In-Person-Verification) to confirm the details.
– After eKYC, click on the ‘Register Now’ or ‘New Investor’ tab given on the fund house website. Fill in the personal details, nominee details, and bank details. Post this a User Id and password is generated for transacting online.
– Now, specify the SIP amount and choose the scheme name. Select the frequency of the SIP which is daily, weekly, monthly, or quarterly, and select the date for the First SIP. Specify the bank account from which the SIP payments will be debited.
Once the registration is complete at your end and the fund house will send confirmation through email and SMS and you are ready to start investing.
For online, besides the AMC’s website, you can do it from registrar & transfer agent (R&TA) such as CAMS or Karvy website, Robo-advisory platforms, and transaction portals like MFU (Mutual Fund Utilities) using Common Transaction Form (CTF). For which you have to create your common account number (CAN), which is a unique reference number issued by MFU.
How To Start SIP Offline?
Starting SIP offline is a conventional mode of investing. Below mentioned are the steps to follow for it:
– Complete your KYC by submitting photo identity proof, address proof, cancelled cheque, and passport size photograph along with filling Form.
– Fill in the common application form/SIP form carefully and completely mentioning the name of the scheme and other details.
– Mention your SIP frequency – monthly, quarterly, or half-yearly. Select date for example the 6thor 16thof every month/quarter. And, mention the SIP amount.
– Provide your National Automated Clearing House (NACH) mandate form filling in all your above-mentioned SIP details.
– Handover the forms (as mentioned above) to the office of mutual fund distributor/agent/relationship manager/investment adviser, or you can even directly submit them to Registrar and Transfer Agents (RTAs)/AMC.
Now, Start your SIP in whichever way suits you to make your money work for you.