SIP: How to start it online and which documents are required?by Ravi Kumar Blogger Live
The new financial year has begun and many investors might be thinking of starting new investments. In case you are planning to invest in mutual funds then SIPs are the finest way to invest. There are myriad of investors, who want to begin investing via Systematic Investment Plan (SIP) in an equity mutual fund scheme, fear the paper work. Well, the point is that you don’t have to tackle with papers or exercise your leg. The point is that these days you can even start sip online too.
Of course, if you were thinking How to start sip then here you go. The foremost thing you require to do before beginning an SIP is fulfilling the: Know Your Customer (KYC) need. KYC is a must to do investment in mutual funds. You would have to submit an identity proof, address proof and of course a photograph. You must also confirm your physical existence via an In-Person Verification (IPV). Of course, you can finish all these needs electronically through eKYC. Most of the fund houses have started catering this facility through their website. You simply have to tap or click on the ekyc link and have to follow the instructions given therein. Remember the exact steps for eKYC differ mildly with every fund house. However, broadly the structure always remains the same.
The system would foremost prompt you to enter all the personal information in an online form. It shall include name, date of birth, address, mobile number and so on. Then in the next step, you would have to upload a scanned copy of your PAN (Permanent Account Number) card along with an address proof. Once you have formed the account, simply login, pick the mutual fund scheme, choose an SIP date and deposit your request. Congratulations, this way you successfully finish the procedure and make your sip account.
Working of sip
Once you decide to invest in the scheme of a mutual fund via SIP, the decided sum is auto-debited from the bank account (you require to mention your bank account from where the amount shall get deducted). This is the amount that particularly is treated as a mutual fund scheme. A specific number of units based on the Net Asset Value are handed over to you and that is prevalent on the buying date. In case you are not in favour of getting the sum deducted from your bank account, you can even handover cheque coupled with the (filled) enrolment form. Also, the mutual fund will deposit your cheque on the demanded date and simultaneously, credit the units to the account you have along with the confirmation.
The earlier you begin to invest in SIP the possible growth will get fruitful. Via SIP, once you invest the (same) amount frequently over-time, you incline to purchase more units when the cost if lower and vice-versa. Hence, the average cost per unit (or per share) is diminished. Not to skip that SIP ends up in catering reasonable returns in the designated time.
So, if you haven’t pondered about SIP so far, it is time that you give it a try.
Created on Jun 18th 2019 00:20. Viewed 302 times.