How to Invest in SIP Online?

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.