How to invest in Sip

SIP or Systematic Investment Plan is the easiest way for an investor to invest in Mutual Funds at regular intervals of time. It may be for a week, month or years. It’s like putting a little money aside regularly to make a big sum over time. Here’s a simple guide on how to invest in SIP and start your investment journey in India.

Understanding SIP

SIP is a method of investing a fixed amount on a regular basis in mutual funds. It helps in spreading out your investments over time, reducing the impact of market fluctuations. Instead of investing a lump sum at once, SIP allows you to invest small amounts periodically.

How to Invest in SIP in India

Step 1: First Arrange your Necessary Documents

Before starting the investment process, make sure you have essential documents such as

• PAN Card
• Aadhaar card
• Address Proof
• Bank details are readily available

Step 2: Complete your KYC

The next step is to complete your KYC (Know your customers) before investing in mutual funds. You can do your KYC by filling out forms online or offline.

If you want to do your KYC offline you must have to go to the nearest bank branch and submit your KYC documents. So, they can easily verify your identity and address. For KYC they only need your name, address, PAN number, bank details, and photo ID proof (passport/driving license).

Step 3: Registration For A SIP

After completing your KYC you have to register your account for a SIP. Because before investing in a SIP plan you must have a SIP registration. You can do SIP registration via Online or Offline. For online you have to go to the trusted AMC or broker website or app.

You just have to give your basic details and your account will be created within minutes. And if you want to register your account offline. Then you have to go to your nearest broker or AMC provider office and register your account.

Step 4: Select SIP Plan

After that select your SIP investment plan in which you want to invest. Before investing in any plan. You must know your investment amount and how much you can invest in this plan. Please select your plan according to your investment goals.

Step 5: Select your amount

In this step, you have to select the monthly or weekly amount that you’re comfortable investing regularly. Remember, even small contributions can accumulate significantly over time.

Step 6: Choose the deposit date for the SIP amount

Now choose a date on which you want SIP to deduct the amount from your account automatically. So, for that purpose, you must have an amount in your account that SIP can deduct easily.

Step 7: Auto debit

If you want the amount you have selected will be deducted from your account automatically on a regular basis. Then you must select the auto debit option.

Step 8: Submit your form

After that submit your form Online or Offline. If you have made your account with AMC or Broke website and app then submit Online. And if you go to the offline office of AMC or Broker then submit your form Offline. And after that, your investment will start with the SIP mutual funds.

Conclusion

SIP investment is a very hassle-free investment plan. In which you have not to do anything and mutual fund companies will do everything on behalf of you with the help of their experts in Mutual funding. And if you want to calculate that how much return you will get after your investment then use this SIP calculator.