Do you have plans to start a SIP(Systematic Investment Plan) in an equity mutual fund scheme, but are procrastinating due to long documentation procedure? If yes, then this article is for you. You don’t have to go through tedious documentation for an SIP anymore. You can start an SIP online from the comfort of your home or office.
Steps to Invest in SIP Online
The first and foremost thing you have to do before starting an SIP is completing the Know Your Customer (KYC) requirement. KYC is a mandatory to invest in mutual funds. For this you will have to submit an identity proof, address proof as well as a photograph. You also need to confirm your physical existence through an IPV (In-Person Verification). All these can be completed electronically through eKYC. Most of the fund houses such as Quantum, Birla Sun Life, etc have started this facility through their website itself. You just have to click on the eKYC link and then follow the steps.
The steps to be followed for an eKYC differ slightly for different fund houses. However, broadly speaking, the steps remain more or less the same.
- Basic Information: Go to the website of your preferred fund house and click on the eKYC link. Then put in your required personal information like name, date of birth, mobile number, address, etc.
- Upload Documents: Now you will have to upload a scanned copy of your Pan Card and Address Proof.
- Video Call: For the IPV (In-Person Verification) requirement, you will have to select a suitable time slot at which you can confirm your physical existence through a video call. Remember to keep your original PAN card as well as address proof handy at the time of the video call as you would be asked to show them during the call.
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Aadhar based eKYC
If you have an Aadhar card, the above process would be even simpler. You just have to enter your AADHAR number and authenticate it with an OTP (One-Time Password) which would be sent by UIDAI. This will pre-populate the form with your basic details which is available in the UIDAI database. Doing this will also eliminate the need of an IPV through a video call.
There is no limit to investment in SIP if you have completed PAN Based eKYC. With Aadhaar based eKYC there is a statutory limitation. You won’t be allowed to invest more than Rs 50,000 in the present financial year. However, as soon as you submit your PAN details, the limit can be enhanced.
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Starting your SIP
Now you can start your SIP. Visit the website of the fund house you wish to invest with and go to the registration link for a new account. It will ask you to fill a simple form for creating an online transaction account with the fund house. Do keep your cheque book and mobile phone handy as it would ask you for your account details and might need verification through an OTP.
Now that your account is created, simply login to your account. Select the mutual fund scheme and choose an SIP date and then submit your request. Your SIP would start. This was the procedure on how to invest in an SIP online. Isn’t the process simple? Do let us know your queries via the comments section below.