When it comes to investing, the term “Systematic Investment Plan” (SIP) has become a catchphrase, and mutual fund investors have attracted to SIPs to invest in mutual funds. However, many people remain confused and always search how to open sip account. So let’s take a look at the process of opening an SIP account.
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How to open SIP account?
With the development of digital platforms, investors may find it easier to create a SIP account online than to fill out an application form, as in the past. You may even register a SIP account from the comfort of your own home.
Here’s a description of the steps involved in open sip account online:
Step 1: KYC (Know Your Customer)
You must first become KYC-compliant before investing in mutual funds, whether through a SIP or otherwise.
Make arrangements for the required documents:
The documentation needed to create a SIP is really basic. The following documents are required:
- Your PAN card
- Your Address Proof (example: Aadhaar, passport, voter ID, electricity bill, driving licence, etc.)
- Your Passport size photo
- Your Cheque book (For Bank Details)
KYC Process
Begin by going to the website of a fund house that provides an eKYC (electronic KYC) service. You might also go to registrar and transfer agency websites like CAMS and Karvy‘s.
You will be required to enter your name, date of birth, and contact information, as well as other basic data at this point. To verify the information, upload soft copies of your PAN card, address proof, and picture.
Video Call Verification
For a video call, you’ll need to make an appointment. The goal is to use a camera to verify your identification. At this point, you will be required to present your PAN card as well as evidence of address.
Video Call Verification Alternative
Using your Aadhaar card might make the procedure go more smoothly. Here’s what you should do:
- Your Aadhaar number must be entered.
- Enter the one-time password provided to the cellphone number associated with your account.
- Your basic information will be filled in for you instantly.
- A video call is not required for verification.
Note:
- You can only invest Rs 50,000 per year using Aadhar-based KYC. You will need to submit the details of your PAN card in order to increase this amount.
- You can invest in any mutual fund plan from any fund company once you have completed the KYC process. You do not need to go through the KYC procedure every time you contact a new fund institution.
Step 2: SIP Registration
Now is the time to register in a systematic investment plan (SIP) in a mutual fund scheme of your preference. Here’s how to go about it:
- First, go to the fund house’s official site to learn more about the scheme.
- Look for a link that allows you to create a new account. (For example, you could see a button that indicates ‘New Investor’ or ‘Register Now.’)
- You’ll be directed to a short application form after clicking this link. Fill up your general personal data and contact numbers here.
- You may be required to create a user ID and password at this time in order to perform online transactions.
- Enter the information for the bank account where the SIP payments will be deducted.
SIP Investment is Good or Bad
Note:
You can begin investing once you have completed your registration and received confirmation from the fund house.
Step : 3 Choosing SIP
Which is the best SIP for your requirements? It will be determined by your income and expenses, as well as your financial objectives and the money you are ready to invest. Here is way to choose it:
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How much money should you invest in SIP?
Experts frequently advise tying a SIP to a financial goal (e.g. buying a car, paying for a vacation, building a retirement corpus). Use a SIP calculator to figure out how much you’ll need to save each month or quarter to reach your goal.
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Date of SIP
Examine your previous bank statements to see when your salary and other income payments are due. Set a date for debiting the SIP amount using this criteria.
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Investing Options
It’s easy to become overwhelmed by the huge number of alternatives accessible to you. An equity-linked plan may be a suitable option for you if you have a high risk sensitivity.
Debt or balanced funds are better options for those with a reduced risk appetite. You can make the best decision by researching current market movements and fund success in the past.
Step 4 : How to Start SIP Investment
After taking all points in consideration now you can start your sip by following steps:
- Use your user ID and password to access your account at any time.
- Choose a scheme that you like.
- Set the amount you want to invest as well as the payment schedule.
- After you finish this step, the SIP will begin in about a month.
Conclusion
Market risks apply to mutual fund investments; read all scheme-related documentation carefully before investing in SIP. Click here to open a mutual fund account & get INR 100 on account opening for free.
This is all from our side regarding How to open SIP account? Although, if you have any doubts about how to create sip account you can just comment below.
Other Interesting blogs related to How to open SIP account:
SIP Investment is Good or Bad?
FAQ About SIP Account Opening
How to invest in SIP for beginners?
Step 1 : Complete your KYC with Cams or karvy. Step 2 : Register with fund house or 3rd party app like groww. Step 3 : Select the SIP of your choice and link it with the bank account.
How to open SIP account online in SBI?
1. Go to SBI MF's official website and go to the 'Invest Now' section. 2. If you are an existing user, log in or create a new account. 3. Fill in all of the essential data on the KYC form. Fill out the form completely and return it to the nearest SBI Mutual Fund branch or Complete KYC online with Cams or karvy.
How to open SIP account in Bank of Baroda?
1. Go to Bank of Baroda official website and go to the 'Invest Now' section. 2. If you are an existing user, log in or create a new account. 3. Fill in all of the essential data on the KYC form. Fill out the form completely and return it to the nearest Bank of Baroda branch or Complete KYC online with Cams or karvy.
How to open SIP account in Kotak Mahindra Bank?
Go to www.kotaksecurities.com. Go to your account page and log in. Place an order. Invest in a mutual fund. Set up a SIP. Fill in the scheme's specifics. To place an order, click the 'place order' button. Then, fill in the amount, length, and frequency of SIPs.
How to open SIP account in Zerodha?
1. Please log in to Coin. 2. Fill in the name of the mutual fund you'd like to invest in. 3. Select Direct SIP from the drop-down menu. 4. Enter the starting investment amount, the start date of the SIP, the frequency of the SIP, and the total number of instalments. 5. To begin investing in a SIP, click start SIP and confirm.
