How to open SIP account & How to start SIP Best Process 2021

3 min readJul 26, 2021

When it comes to investing, the term “Systematic Investment Plan” (SIP) has become a catchphrase, and mutual fund investors have attracted to SIPs to invest in mutual funds. However, many people remain confused and always search how to open sip account. So let’s take a look at the process of opening an SIP account.

How to open SIP account?

With the development of digital platforms, investors may find it easier to create a SIP account online than to fill out an application form, as in the past. You may even register a SIP account from the comfort of your own home.

Here’s a description of the steps involved:

Step 1: KYC (Know Your Customer)

You must first become KYC-compliant before investing in mutual funds, whether through a SIP or otherwise.
Make arrangements for the required documents:

The documentation needed to create a SIP is really basic. The following documents are required:

Your PAN card
Your Address Proof (example: Aadhaar, passport, voter ID, electricity bill, driving licence, etc.)
Your Passport size photo
Your Cheque book (For Bank Details)

KYC Process

Begin by going to the website of a fund house that provides an eKYC (electronic KYC) service. You might also go to registrar and transfer agency websites like CAMS and Karvy ‘s.

You will be required to enter your name, date of birth, and contact information, as well as other basic data at this point. To verify the information, upload soft copies of your PAN card, address proof, and picture.

Video Call Verification

For a video call, you’ll need to make an appointment. The goal is to use a camera to verify your identification. At this point, you will be required to present your PAN card as well as evidence of address.

Video Call Verification Alternative

Using your Aadhaar card might make the procedure go more smoothly. Here’s what you should do:

Your Aadhaar number must be entered.
Enter the one-time password provided to the cellphone number associated with your account.
Your basic information will be filled in for you instantly.
A video call is not required for verification.

Note:

You can only invest Rs 50,000 per year using Aadhar-based KYC. You will need to submit the details of your PAN card in order to increase this amount.
You can invest in any mutual fund plan from any fund company once you have completed the KYC process. You do not need to go through the KYC procedure every time you contact a new fund institution.

Step 2: SIP Registration

Now is the time to register in a systematic investment plan (SIP) in a mutual fund scheme of your preference. Here’s how to go about it:

First, go to the fund house’s official site to learn more about the scheme.
Look for a link that allows you to create a new account. (For example, you could see a button that indicates ‘New Investor’ or ‘Register Now.’)
You’ll be directed to a short application form after clicking this link. Fill up your general personal data and contact numbers here.
You may be required to create a user ID and password at this time in order to perform online transactions.
Enter the information for the bank account where the SIP payments will be deducted.

Originally published at https://profitmust.com on July 26, 2021.