SIP refers to Systematic Investment Plan. It is a plan that works on a systematic approach in a quest to save money. It is a plan that will allow an individual to invest their money into mutual funds so that it helps in accumulating a large sum which is accrued for fulfilling your needs in the future years to come. With a SIP, you can invest your money which is predetermined into the mutual funds at regular intervals like quarterly, monthly, weekly, etc.

The money deposit for the investments has to be made again and again at certain intervals, regularly. One invests in the systematic investment plan in accordance with their monetary needs that they need to achieve by saving their money by investing in the SIP – systematic investment plan. The investor can choose the interval periods that you want to invest through. Once the investor starts investing into the SIP investment plan, the amount of the investment money will be automatically debited from your account which you had registered with and invested into the plan. This money will be invested into a mutual fund scheme that the investor has chosen. After that, the investor is given a certain number of units which are based on the market rate; this is called the NAV or the net asset value. It works in a way that each time your money goes into the investment amount, more units of the scheme will be added to your SIP account. Now, that you know what SIP is, let us discuss how to invest in SIP online!

Steps to invest in SIP Online

How to invest in SIP online is a very simple question to which the answer is long but very easy if you follow the steps carefully. The answer to how to invest in SIP online is given below:

• The first step to take if you want to invest in a systematic investment account is to finish the process of KYC. KYC stands for Know Your Customer. In this, the potential investor or the customer will be asked for their information in detail. Information like their name, cellular phone number, address, date of birth, and other things helpful in knowing the customer are asked for. KYC is a compulsory step to be done before the investor plans on investing into SIP mutual funds. This process can be done on any KYC registration agencies or websites. Another very important thing to know about this is a step which will require lesser time in being a KYC complaint. It is possible by linking your Aadhaar card to the KYC account or website. Linking your Aadhaar card will give the KYC account all the information related to customer’s details by taking the required information from the UIDAI – Unique Identification Authority of India.
• Uploading your documents is the next step in the process of investing in SIP online. The investor has to upload their documents for verification. The KYC will require the investors to scan and then upload their PAN – permanent account number card details onto the website.
• No process can be completed without verification. Now, the investor will be verified through a video call process. This is called IPV: In – Person Verification which is done online. The fund company will ask the investor to select a suitable date and time when the video call would be possible without any hindrances and connect with them through a video call through the webcam. During this video call, the investor might be asked to provide them with a view of their PAN card and address proof, so they need to keep them handy in case that happens.
• The next step in investing in systematic investment plans is to make your account. The investor has to go to the fund website and open the registration link to make a new account.
• Entering your bank details is the next thing to do in the process of starting your systematic investment plan online. The investor has to enter the bank details onto the website after the account has been made.
• The next step the investor has to do is to verify their account with an OTP – one-time password that they will receive on their cellular device through SMS or on their email IDs.
• Now, the account is created. The next thing to do is to log into the account.
• Now, the investor has to make the certain selection for the investment process of SIP to start, the selections have to be made on the date of the SIP and the mutual fund scheme that the investor is choosing to invest their money into.

Once the SIP – systematic investments plan account has been opened online, you can start investing through online mode.

What to do after KYC?

How to invest in SIP online after completing the KYC is very simple! After you have become a KYC complaint, what you need to do, as an investor, is that you need to go to the fund company’s website that you want to invest in. Go to the link that reads as “register now” or “new investor”. Find the link and open it. Now, the investor will get a form that they have to fill up. Basic details have to be filled. A username and password have to be selected and generated so that it can be used for online transactions. Bank account details of the investor also have to be entered into the form. Then, the investor has to select an amount for the monthly debt that the bank account will transfer to the mutual fund company for investing in it. This is called auto-debit. Then, the investor has to log into their account with their new username and password and then they have to select the mutual fund scheme that they want their money to be invested into. Then, the dates for the money to be invested have to be chosen. The dates can be in accordance with the ease and the convenience of the investor. The SIP plan will start running after a period of 30 days to 40 days after the process has been finished.

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SIP stands for Systematic Investment Plan. It is basically a systematic approach in terms of saving money.

What is Systematic Investment Plan (SIP)?

It is a plan that allows one to invest their money into mutual funds so that a large sum is accrued for fulfilling your needs in the future years to come. With a SIP, you can invest your money which is predetermined into the mutual funds at regular intervals like quarterly, monthly, weekly, etc.

A small amount of amount is invested in a systematic investment plan in the market. The deposit has to be made again and again at certain intervals, regularly. One invests into the systematic investment plan in accordance with their monetary needs that they need to achieve by saving their money by investing in the systematic investment plan. You can choose the interval periods that you want to invest through. Once you start investing in the systematic investment plan, the amount of your investment money will be automatically debited from your account which you had registered with and invested in the SIP. This money will be invested into a mutual fund scheme. After that, the investor is given a certain number of units which are based on the market rate; this is called the NAV or the net asset value.

It works in a way that each time your money goes into the investment amount, more units of the scheme will be added to your SIP account.

SIP allows you to save regular and continuous savings you can calculate through any SIP calculator. You are committed to saving at regular intervals so that a good and huge amount can be accrued in a time period so that it can be used later. It can be more useful if the Systematic Investment Plan with a purpose of long-term investment plans. The SIP is very flexible in terms of the investor having the control over whether they want to continue or discontinue the Systematic Investment Plan (SIP), at any time. The investor has superpowers over the Systematic Investment Plan that they invest in as they are the ones who have the power to decide if they want to decrease or increase the amount of investment. It is super easy as well in terms of regular investments. There is absolutely no problem if you forget to make the payments as you can give your bank an instruction to auto-debit the investment amount from your account during every interval. The returns from the investments that you make into SIP are pretty good because of the rupee – cost averaging.

Five Step Guide to Systematic Investment Plan (SIP)

1. Figure out why and how much you want to invest

The most important thing before you invest into the SIP is to figure out your risk appetite. How much can you afford to invest in mutual funds that do not have a 100 % guaranteed return! Assess your risks carefully and then understand why you actually want to invest and what is your purpose of doing so. If you know why to want to invest and how much you want in return, it will help you to invest the amount closest to what could be appropriate for the returns that you are looking to get.

2. Mutual Fund

Many mutual fund schemes are available for you to choose from to invest your money into. The risk appetite helps a great deal in settling on a mutual fund scheme(s) to invest into. Before you select a mutual fund, asses the performance of that scheme for the past few years to see how good their returns have been in the current economic situation.

3. How to invest in SIP?

• • • The first step is to fill up the SIP application form.
    • Then, submit a cheque for the SIP amount for the month (offline)
    • Or, fill up your ECS form (online).
    • Submit a canceled cheque
    • Give your Residential proof
    • Submit your KYC form

4. Select your dates and duration for SIP

As you already know that the money you are investing into SIP can get auto-debited from your bank account, you will need to select your dates for the money to be deducted from your account and invested into the mutual funds. Most of the firms offering investment options into SIPs offer the following dates: 28^th, 20^th, 15^th, 10^th, 5^th and 1^st. As an investor, you can calculate the amount of money that you need to fulfill your future goals and requirements like your child’s education, building a house, etc. After you calculate the amount that you need to accrue, then deciding on a time period that will be your duration for the SIP is easy.

5. Online or Offline? And till when to stay invested?

This is an important decision to make. There are both options available for you to choose from which offers you the choice if you want to invest in the SIP online or offline. You do not have to go through the hassle of remembering the dates for the transfer of the money to be invested into your SIP account as the plan works on the basis of auto-debiting. So, even if you forget, your money will automatically be invested every month or year, whatever payment mode you choose. Also, it is the best to stay invested in your SIP for the time that you have decided upon by selecting the duration as a SIP is designed in a way that it gives maximum returns through long-term investments.

Conclusion

Follow these 5 golden steps to your Systematic Investment Plan to invest online in SIP and have an easy long-term investment with high returns without the worry of getting reminded every time to pay your investment money as it is an auto – debit plan.

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