One of the most well-liked methods of investing in mutual funds is through a simple SIP (Simple Individual Plan). Starting a SIP with a frequency of your choice is possible: daily, weekly, monthly or quarterly, for example. It’s important to confirm with the AMC before starting a SIP, as not all AMCs offer the same frequency options. How do you begin using SIPs?
To invest in mutual funds, you must be in compliance with SEBI laws. KYC criteria can be met by sending a completed KYC form with your self-attested photo attached. Direct submission of KYC documents to the AMC or RTA will require an in-person verification. In addition to the originals, you’ll need to provide self-attested copies of your identification and address proof documents (such as your Aadhar Card, PAN Card, and proof of address).
To verify mutual fund distributions in person, AMFI-registered distributors are also permitted to do so. If you use an AMFI-registered distributor to submit your KYC documents, the in-person verification can be done at a time and location that works for you, so you don’t have to go to an AMC or RTA office.
For existing mutual fund investors, all KYC requirements are expected to have been met. However, before making an investment, you must confirm that your KYC has been validated.
It is essential to have a bank account before you can open a SIP account. The application form for a mutual fund asks for information about your bank account (account number, IFSC code). A copy of a cancelled check from your bank account is also needed as proof of your account.
In order to make SIP investments in a mutual fund, you must first choose a fund and an option within that fund. Investing in a regular plan (through a mutual distributor) or a direct plan is also an option (directly with the AMC). For regular plans, the AMFI Registration Number (ARN) and the EUIN (Employees’ Unique Identification Number) must be provided on the application form; If you are making regular investments, the distributor is expected to assist you in filling out the application form and submitting it to a third party AMC.
In order to begin SIP investment, you must fill out the Auto Debit ECS Mandate form, also known as the SIP registration form, which is required. The SIP registration form permits the bank to deduct the SIP instalment amount from your bank account and transfer it to the AMC on a predetermined date. SIP registration forms require that your signature match the signature on your bank account data.
The following is a step-by-step guide to setting up a mutual fund SIP offline. SIP can also be started online. Let’s examine the beginning process with SIPs online. Obviously, you’ll need a computer with an Internet connection to finish the entire process.
Aadhar Card, PAN Card, Driving License, Utility Bill, a cheque book, and a png or Jpg image of your passport-size photo are all required to begin SIP investment online; a Jpg or png image of your passport-size photograph is also required. The cheque book is a convenient way to supply your bank account information, while an Aadhar card helps streamline the mutual fund KYC process.
As you may know, the mutual fund KYC requirements must be met in order to begin a SIP investment online.
The only thing you need to do to begin is enter your name, email address, phone number, and postal address. Only one process is required, no matter how many AMC schemes are invested in.
Become mutual fund KYC compliant – This is the second step. To invest in mutual funds, you must meet the mutual fund KYC requirements. Using the eKYC channel, you can become mutual fund KYC compliant online. There are a number of fund houses (AMCs) that offer eKYC. Begin the procedure by visiting the website of an AMC.
First, you must complete the online form and then submit a copy of your PAN, Aadhar, and address proof to verify your information.
Start SIP online in the third step. In order to invest in a specific AMC’s fund, you must first complete the KYC process. A “Register Now” or “New Investor” button should be shown on the page. Complete a form with your basic personal information, such as your PAN number, and choose a username and password for online transactions. Additionally, it will request details about your bank account so that you can set up the SIP auto-debit amount. Once you’ve picked a username and password, all you have to do is select the investment strategy and plan that best suits your needs. SIP instalment payments can be rescheduled online after a 15-30-day lag, which the AMC will notify you of via a notification on your computer’s screen. For as long as you choose, the SIP will continue indefinitely.