Step-By-Step Guide On How To Open SIP Account Online?

Investment in Systematic Investment Plan (SIP) has become a buzzword in the financial world today. SIP investment is more popular among mutual fund investors. A systematic Investment Plan is a method of investing in mutual funds wherein an investor selects a mutual fund scheme and invests the fixed amount of his choice at fixed intervals.

SIP investment plan is about investing a small amount over time instead of investing a ransom amount at once resulting in a higher return. You can start SIP investments anytime with the correct suitable scheme plan that suits your needs.

What is a SIP account?

A SIP account is a fund house arrangement that enables you to invest a small amount of money in a mutual fund plan of your preference at regular intervals. Because you are pushed to set aside a defined amount at regular periods, an active SIP account instills a feeling of financial discipline over time and gives us a sense of financial security.

How to open SIP Account?

SIP investment allows you to invest at your convenience as you can start with an investment of as low as Rs. 500. The procedure to open an SIP account is mentioned below

Step-1: Complete your KYC. This includes submitting your basic details like name, address, etc. to the KYC KRA Agency. This verification is done either through video calls or via Aadhar OTP. Upon verification, you can start investing.

Step-2: Register for an SIP in the mutual fund scheme of your choice.

Step-3: Choose the right SIP and the time of investment. Update the bank account details from where the amount should be deducted.

Documents Required to Open SIP Account:

The KYC process is the first step towards investing in mutual funds. It is usually a one-time process wherein your personal details are verified by an Agency. Post this, you can start investing in any fund.

The KYC Registration Agency(KRA) will verify your name, address, office address, etc. The documents required to be submitted/uploaded on the KYC portal include a copy of the canceled cheque of the bank account that you want to associate, Passport-size photograph, Identity proof (PAN Card, Passport, Voter's Identity Card, Aadhaar Card, Driving License), and Address proof (Latest Utility Bills, Bank Statement, Letter from your employer).