How to Start SIP Investment: Learn How to Start SIP | Mirae Asset (2024)

When it comes to investment, Systematic Investment Plan (SIP) has become a buzz word and investment in mutual funds through SIP has become extremely popular among mutual fund investors. To invest in mutual fund SIPs, there are two way – either you take help of a mutual fund distributor or do it yourself online. However, a large number of investors may still be confused about how to open SIP account online.

Today with the advent of digital platforms, investors may find it easy to open a SIP account online compared to the traditional way of investing by filling up an application form. In fact, you can open SIP account online from the comfort of your home. Please note that to open SIP online, KYC is a mandatory requirement. To be KYC compliant, your address proof, and PAN Card etc. is a mandatory requirement. Here are the steps that one need to follow -

Step 1: Collect necessary documents

As mentioned above, the investor need a PAN card, an address proof in the form of driving license/bank statement/utility bill, a jpg or PNG image of passport size photograph, and cheque for the bank details.

Step 2: Be KYC compliant

Once the documents are ready, the investor can get the KYC done through any AMC website or RTA website which provides e-KYC facility. KYC done online is referred as eKYC. For doing e-KYC, the investor needs to provide basic information like name, date of birth, mobile number, address, and upload a copy of address proof, PAN, identity proof and passport size photograph image online. A video call is required for IPV (In-Person-Verification) to confirm the details. Along with KYC, the investor also has to fulfill the FATCA formalities by answering the required questions online.

Step 3: Register / SIGN Up with the AMC website

As the investor is done with two steps – Organizing the necessary documents and e-KYC, he has to follow the steps mentioned below to start a mutual fund SIP online.

If the investor has done e-KYC from the website of the fund house (AMC) in which he wants to invest, he should click on the 'Register Now' or a 'New Investor' tab given on the fund house website, where the investor need to provide PAN number, personal details, nominee details, bank details and answer few FATCA questions. Post this a User Id and password is generated for transacting online.

Step 4: Decide Investment Amount and Scheme plan and option

This again is an important step, where the investor has to specify the SIP amount and choose the scheme name. The investor also has to decide the scheme plan and option. Generally investors can go with either regular plans or direct plans and can opt either for growth option, dividend payout option or dividend reinvestment option. Please note that investor cannot opt for dividend reinvestment option if investing in ELSS scheme.

Most of the AMCs provide an online SIP calculator to help the investor to know the amount to make a decision based on the financial goal, and how much to invest daily/ monthly/weekly etc. to accumulate for the desired goal corpus. Investor can invest accordingly by knowing the amount with the help of this online tool.

If the investor has already decided or know the exact SIP amount then he or she can straightaway fill up the investment amount in the box provided without taking the help of the calculator.

Step 5: Decide Payment Mode and Date

After the investor has decided whether to make a daily, weekly, monthly or quarterly SIP investment, he/she has to selects date/s and to make the payments for the first SIP installment. It is important to choose this date wisely. Now the investor has to select the mode of payment - There are few options as the amount can be auto debited from the investor's account through registration of OTM (one time mandate), Net banking or NEFT/ RTGS payment.

Step 6: Submit Transaction

Once the investor fills in all the details online, it is submitted to the AMC. The AMC sends an acknowledgement through email and SMS. If the transaction is submitted within the cut-off timing of the respective scheme, the units are allotted the same day and SOA (Statement of Account) is emailed to the investor.

Generally the next SIP date can be a date of investor’s choice after 15 – 21 days (depending upon the AMC) from the first investment date. The AMCs reminds the investor through SMS and email prior to the next SIP installment due date.

In case of any issues in setting up the SIP, usually the service team of the AMC writes to the investor or call and helps in sorting out the issue.

The investor can also visit the AMC website and login to check the status of investments etc.

Please note that if you are already mutual fund KYC compliant, you can visit the AMC website, provide your PAN number when asked, the AMC will verify your KYC status and you can follow the steps for online SIP account opening.


Now that you know how to open SIP account online why not opt for the simple way to start a SIP in mutual funds ?

An Investor Education and Awareness Initiative by Mirae Asset Mutual Fund.
For information on one-time KYC (Know Your Customer) process, Registered Mutual Funds and procedure to lodge a complaint in case of any grievance Click Here.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

How to Start SIP Investment: Learn How to Start SIP | Mirae Asset (2024)


How to start SIP step by step? ›

How to Invest in SIP in India?
  1. Step 1 - Keep All The Necessary Documents Ready. ...
  2. Step 2 - Get Your KYC Done. ...
  3. Step 3 - Register For A SIP. ...
  4. Step 4 - Choose The Right Plan For Yourself. ...
  5. Step 5 - Choose The Amount Which You Want To Invest. ...
  6. Step 6 - Choose the Date of Your SIP. ...
  7. Step 7 - Submit Your Form.
May 16, 2024

What is basic knowledge of SIP? ›

In SIP, you invest a small amount of money every month. In some months, the price will be high while in some months, the price will be low. If you consider the long term, the price you pay will be an average of high and low. Thus, you will not pay a high or overvalued price for the mutual if you invest via SIP.

What is the formula for SIP investment? ›

The SIP calculator will generate a result using the above information and the following formula: Amount invested × ({[1 + Periodic rate of interest] Total number payments – 1} / Periodic rate of interest) × (1 + Periodic rate of interest).

Which SIP plan is best for beginners? ›

Here Are Some SIPs In Which Beginners Can Invest:
  • Quant Active Fund: It is a multi-cap fund that has an allocation of 40 percent growth and 60 percent value stocks. ...
  • PGIM India Flexi Cap Fund: ...
  • Parag Parikh Flexi Cap Fund: ...
  • Kotak Equity Opportunities Fund: ...
  • Edelweiss Large & Mid Cap Fund:

How much money do I need to start SIP? ›

You must strive to save at least 30% of your gross income or ₹60,000 every month. To calculate how much amount you should invest in SIPs, we will have to use the standard formula, which is 100 minus your age to be invested in equity through mutual funds.

How much is $5000 for 5 years in SIP? ›

How much is Rs. 5,000 for 5 years in SIP? If you invest Rs. 5,000 per month through SIP for 5 years, assuming 12% return. The estimate total returns will be Rs. 1,12,432 and the estimate future value of your investment will be Rs. 4,12,431.

How much is 5000 for 5 years in SIP SBI? ›

Future value (FV) = P x { ÷ r} x (1 + r)
DurationAmount Invested MonthlyMaturity Value
5 years5000₹4,12,432
8 years5000₹8,07,633
10 years5000₹11,61,695
12 years5000₹16,11,261
3 more rows

What happens if I invest 20 000 a month in SIP for 5 years? ›

Value of INR 20,000 per Month in SIP

If an investor invests INR 20,000 per month for a period of 5 years, he will be able to earn INR 17 lakh as the overall income generated from SIP. The total investment in the tenure of 5 years will be only INR 12 lakh.

What is rule of 72 for SIP? ›

A simple method for estimating how long it will take for an investment to double based on its fixed yearly rate of return is the Rule of 72. You may calculate roughly how long it will take for your portfolio to double in size by dividing 72 by the fixed rate of return.

How to make profit in SIP? ›

SIPs earn you money through the power of compounding. Investing a small amount of money for a longer duration can get you good returns. By investing a small amount at regular intervals you can build a large corpus and meet your long-term financial goals.

How do I check my SIP profit? ›

FV = P [ (1+i)^n-1 ] * (1+i)/i
  1. FV = Future value or the amount you get at maturity.
  2. P = Amount you invest through SIP.
  3. i = Compounded rate of return.
  4. n = Investment duration in months.

Can I start SIP immediately? ›

You can even start your investment with as low as 100 rupees a month. You do not have to time the market in SIP investment. You buy fewer units when the market is bullish, and you buy more units when the market is bearish.

What do I need to know before starting SIP? ›

Steps To Know Before Investing In SIP
  • Step 1: Define Your Goal. Have a goal in mind before you begin your investment in this plan. ...
  • Step 2: Determine The Value Of Investment Required. ...
  • Step 3: Prepare A Finance Schedule. ...
  • Step 4: Identify The Investments. ...
  • Step 5: Choose The Right Scheme. ...
  • Step 6: Monitor Regularly.
Feb 3, 2023

How do I start daily SIP? ›

Daily SIP Mutual Fund: How to Invest in Mutual Fund Daily SIP in 2024?
  1. Choose Your Investment Platform.
  2. Complete Your KYC (Know Your Customer) Process.
  3. Choose Your Mutual Fund Scheme.
  4. Set Up Your Daily SIP.
  5. Monitor Your Investment.
Mar 27, 2024

What is SIP for dummies? ›

What does SIP mean? SIP stands for Session Initiation Protocol and is a method used to make data and voice transfers via the internet.

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