Investing in mutual funds via SIP has its own benefits. There are two ways you can receive this benefit – either via online mode of investing or the offline mode of investing. Though the offline mode of investing is the more conventional and traditional way to invest in mutual funds via SIP, the online mode has been gaining some traction in the last few years.
If you are one of those investors that dread the challenging and time-consuming process of investing in SIP via offline mode, then you can invest in SIP online. Investing in SIP via online method eliminates the tiring paperwork and saves you ample of time. With just a few clicks, you can receive mutual funds benefits. Let’s comprehend how to invest in SIP online.
What is SIP?
SIP is a disciplined and systematic way of investing your money in desired mutual fund schemes. SIP investments involve allotting a pre determined sum of money at regular intervals towards desired funds for a fixed period of time. A specific amount is debited from the registered bank account of the investor and used at SIP instalments in the desired schemes at each interval. The periodicity of the intervals can be set according to an investor’s convenience. An investor can invest as low as Rs 100 in mutual funds via SIP mode of investment.
How to start SIP online?
If you wish to invest in SIP via online process, just follow these simple steps:
- Begin the registration process
The primary step towards starting an SIP investment online is opening the page of you desired mutual fund house’s website. The homepage of the fund house is likely to contain the CTA which can be easily spoteed by naked eyes. Common CTAs include ‘Invest with us’, ‘Make a transaction’, ‘Invest now’, etc. - Fill your KYC details
If you are an existing investor who has already completed their KYC (Know Your Customer) details, your KYC status would reflect as registered or verified. In such case, you can skip this step and move to the next one. However, on the onset that you are a new investor, you must provide the mandatory details as required such as address proof, aadhar card, etc. - Give registration and investment details
Once you have completed your KYC verification, an investor is further asked to input registration and investment details as needed such as name of the desired mutual fund scheme, details of the bank account, etc. Next you ned to input several SIP registration details such as investment amount, investment duration, the date on which SIP investment must be made, type of SIP chosen, frequency and periodicity of instalments, etc. - Register your preferred mutual fund as biller with the registered bank account
The process for SIP registration does not end with the registration of SIP with the mutual fund house. A mandate is also required to be provided to the bank for paying requisite instalments towards SIP investments.
Clearly, investing in SIP through the online process is quite effortless and hassle-free. Go and begin with your SIP investments today. Thanks to the online process, you can invest in mutual funds online from the comfort of your home. Remember, that you can also use an SIP return calculator to understand the estimated returns on your mutual fund investments. Most fund houses and AMCs offer this investment tool to investors. Happy investing!
