How to Investing in SIP?

How to Investing in SIP: If you are planning to invest in a mutual fund then SIP is the best way to invest. Many investors, who want to start investing through Systematic Investment Plan (SIP) in an equity mutual fund scheme, are afraid of paperwork. We are telling you how you can start SIP online from your home or office on the computer. Follow these steps given below:

1. KYC: The first thing you need to do before starting SIP is to complete the Know Your Customer (KYC) requirement. KYC is required to invest in mutual fund. You will have to submit an identification proof, address proof and photograph for this.
2. Require Documents: To get KYC, you will need the following documentsrnPAN card, Address Proof (like passport, Voter ID card, electricity or mobile bill, driving license, etc.), Passport size photo, Cheque(to provide bank details)
3. KYC Process: Start by visiting the Fund House website providing the convenience of EKYC (i.e. electronic KYC) You can also visit any registrar and transfer agent’s online portal. Here you must provide other basic information including your name, birth date, and contact details. According to the details provided, upload your pan card, proof of address and soft copy of photographs too. You may have to schedule an appointment for a video call. Its purpose is to confirm your identity through a video call. You will also need to show your PAN card and address proof at this level.
4. Register for SIP: Now you have to register for SIP in your preferred mutual fund scheme. Visit the Fund House website, which offers the first plan. Find the link to register a new account. Once you click on this link, you will be taken to a simple application form. Here, you will have to fill out your basic personal details and contact information. At this point, you have to choose a user id and password to do online transactions. Provide bank account details out of which SIP payment will be debited.
5. Choose a mutual fund plan: After all the preparations you have to tell your chosen plan. You will have to choose carefully the plan for investment. Fund houses offer many options for investing in equity funds. According to your ability to take financial purpose and risk, choose your plan from the type of equity fund given there.