How to start an SIP?
Posted by Fintra , updated 2020-12-29
SIP stands for Systematic Investment Plan. SIP is a comparatively new method of mutual fund investing. How does SIP operate? Well, it involves the subscriber investing a fixed amount of money on any mutual fund they wish. The operating system of SIP closely resembles a recurring deposit system, the only difference being that in the case of SIP, the returns depend on the current conditions of the market.
HOW TO OPEN AN SIP ACCOUNT?
Many potential investors are perplexed as to how to open a SIP account. The process is not that difficult, really. To open a SIP account, you simply follow the below-given steps-
- The first step to any mutual fund plan is to be KYC-compliant. All you need to do is fill up the KYC form, submit your PAN, id proof, address proof, and photographs. The process can also be done via the internet, through eKYC.
- Next, you need to select the fund for your SIP. Select your fund carefully after conducting thorough research.
- After selecting the fund, you need to decide the amount you are going to invest in. You can avail of an online SIP Calculator to help you figure out how much you should invest to reap your desired amount of profit.
- Choosing the payment frequency is quite important when it comes to SIP. You have to select whether the investment will be monthly, quarterly, or annually. Then you have to select a mode of payment of installments. All these factors will remain fixed throughout the investment period, so choose them wisely.
- After completion of all the steps, you have to submit the form. This submission can be done both online and offline. Once the submission, your SIP account is all set up and ready to go!
So these are all the steps to opening a SIP account. Pretty simple, right? We hope that you have found this article to be helpful and informative.