How to invest in SIP?

Published : 19 Jan 2023

You can follow the steps given below to start your SIP investment journey:

1. Keep the necessary documents ready Always make sure that you have all the necessary documents ready before you can invest. Such as: · ID Proof · PAN Card · Address Proof

2. Get Your KYC Done

Before investing in any financial product, it is critical to comply with KYC norms set by the government. One can fill an application form either online or offline at any of India's authorized banks or post offices where pre-paid cards are issued. The application form includes personal details such as name, address, photo ID proof (passport/driving license), and a declaration about the investment you are making.

3. Register For A SIP

To start investing in a systematic investment plan (SIP), one must have an account with a registered Indian broker or financial advisor. Once registered, you can choose from a wide range of investment plans to suit your needs and risk profile.

4. Choose The Right Plan

This is the most crucial step. Before choosing a plan, ask yourself- How much risk? How many units (units = shares) do you want? What type of investor are you?

5. Choose The Amount Which You Want To Invest

It is essential to choose how much money you want to invest every month or every week. This will depend on how often you need money and how much it will be worth at any given time.

6. Choose the Date of Your SIP

As per convenience, select a date. One can even choose multiple dates for various monthly SIPs

Step 7 - Submit Your Form

Once you choose the mutual fund company, start the SIP by submitting the form online or offline (depending on your fund house).