How to Start SIP Investment for Beginner?

Investments are considered as one of best savings practice in India. As a beginner most of us are unaware about what is SIP and how to start SIP investment. Are you among this group?

If so, then its good news for you because,

After reading this article you will get to know what does SIP means. Also you will be able to start investing in SIP online by yourself.

In the end,

I will share pro strategy to make your SIP investment more profitable.

SIP is Systematic Investment Plan offered by mutual funds for investors. It allows investors to invest in multiple mutual funds in discipline manner.

Mutual Funds Sahi Hai

How to start SIP investment – Step by Step

Today there are many online mutual fund platform to get started with your investment account. Once your account is created and verified your are ready to begin your SIP investment.

Lets quickly finish it three simple steps

Select SIP investment platform

Below is list of few mutual fund investment applications where in you can begin your SIP investment.

• Paytm Money
• Mobikwik

Apart from this you can also start investment account with bank specific mutual fund apps. Contact your bank manager to get started with your SIP investment account on mobile application. Here are few top bank specific mutual fund apps

• Kotak Mutual Fund
• HDFC MFOnline Investors
• SBI Mutual Fund InvesTap
• UTI Mutual Fund
• Axis Mutual Fund EasyApp

Here I have listed few top rated MF apps for your investment account.

Complete KYC formalities

Next step comes is completing KYC (Know Your Customer). This is most important step where in you have to submit your ID proof and bank details. Most of the time account is verified in single day or it may 1 or 2 days for KYC verification.

Next you have to set standing instructions for your SIPs from your bank account that you provided during KYC.

Select mutual funds to start SIP

This is an important step to consider when starting an SIP. Depending upon your risk factor you have a choice to select list of MFs.

High risk funds being risky in adverse market conditions generate higher returns in good times. Similarly low risk funds generate steady returns throughout the your investment tenure.

Pro Tip : Diversify your investment budget in multiple mutual funds that investing in single. Invest 50% in low risk funds, 30% in moderate risk funds and 20% in high risk funds.

Choose your suitable SIP plan

As per your expectations choose best suitable SIP plan for your investment. In this step you have to mention SIP counts and specify ECS date to process SIP from your account.

You have option here to either invest in SIP on monthly basis or invest in one time. It depends on your convenience to select between these options.

That’s it.

Now you just need to fund your bank account before due date of your SIP. Keep your SIP for long duration to get the best returns for your investments.

Check our online SIP calculator to calculate how much you can earn with monthly SIP for given period of time.

Summary

In this article you have learn about what is SIP and how to begin your SIP investment.

However your investments are profitable if you continues it for longer duration. Investment in mutual funds seen more profitable for long term as compare to short duration.

Today you can start SIP with as low as RS 100. So, plan your investment wisely and do consult your fund adviser before investing.

If you like my article do share with your colleagues and don’t forget to leave comment for any queries.

Thanks 🙂