5 Steps To Invest in Systematic Investment Plan Online

To maximise the financial rewards to their investors, financial institutions provide a variety of investment products with flexible features. A systematic investing plan is a tool that allows you to invest in mutual funds on a regular basis. It is both pleasant and advantageous in the long run. However, you must grasp what it means and take the necessary actions to reap the most rewards from such investing alternatives.

SIP investment plans enable you to stagger your investments over time and offer the option of a monthly auto-debit from your bank account. You can also halt and resume investments at your leisure. As an investor, SIPs allow you to use the power of compounding. These monthly investment schemes can help you accomplish your long-term financial goals in a consistent manner over time.

When you use a SIP to invest in a Mutual Funds programme, you only acquire the fund units that correspond to your investment amount. The SIP leverages the power of compounding. As a result, the likelihood of attractive returns from your SIP investment is higher.

Systematic Investment Plans (SIPs) can benefit in both up and down market cycles. It is primarily because, when it comes to fund selection, a balanced portfolio always assures that your return is greater than the amount you invested at the end of your investment period. As a result, it is critical to stick to your plan and never divert from your aim of long-term savings for the future.

The simplest approach to benefit from SIP investment is to simply begin. If you are not an expert in market timing, don’t worry; SIP will handle all of your investment demands. You must understand how to invest. You can call your bank’s relationship manager and inform them that you want to begin investing through SIP. Mutual funds can also be purchased online. There are numerous mutual fund companies to choose from. So conduct some study and begin investing in SIPs as soon as feasible.

Identify your investment objective

Before investing, you need to first determine your risk tolerance. In most circumstances, the risk tolerance decreases as one’s age and financial demands increase. If you want a larger return on investing, you must improve your risk tolerance. After you’ve determined your risk tolerance, you should consider why you want to invest. Before investing in mutual funds, the first step is to analyse and identify your financial goals. Before making an monthly investment schemes selection, it is critical to consider the financial goal. It is critical to set goals and timelines based on your monthly income and expenses such as loan repayment, education, marriage, vacation, and so on. Analysing the financial objective can assist you in determining the necessary finances and timescales to ensure the same.
Furthermore, you may exactly calculate the required cash and the rate of return based on the schedule and the inflation rate.
After determining your investing objectives and risk tolerance, you may identify the optimum investment combination for you. Investments assist us in meeting our financial objectives. As a result, knowing your investing aim is critical because it will assist you in determining the appropriate portfolio mix of shares and loans.

Complete the KYC details

If this is your first time investing in mutual funds, you must complete E-KYC (Electronic Know Your Customer). You must be KYC compliant in order to invest in SIP. Because of technological advancements, you can now complete the KYC procedures online. You would be required to furnish identification, address proof, PAN, and Aadhar card details, among other things. In addition to the eKYC process, depending on the terms and conditions, you may be required to complete an in-person verification process, either online or offline. This is an online Aadhar-based identification verification process that takes less than 10 minutes to complete. It is a straightforward procedure that should just take a few minutes.

However, in practice, the verification process takes roughly 2-3 days, and the fund may additionally require in-person verification.

You can open a new account once you have completed the KYC requirements.
You will be emailed your username for logging into their online site. You can then change the password for the account. Remember that once you open an account or folio with an AMC, you can use it for any future investments in the same or different funds. If you visit another AMC, you must register a new account or folio. E-KYC, on the other hand, is a one-time event.

Choose the right mutual fund

With so many mutual fund alternatives available, you must choose the best one for your financial goals and risk tolerance. People frequently begin SIPs without considering the amount they can easily invest.

Market volatility, poor performance, mis-selling, and other factors have kept investors away from this market niche. The long-term strategy eliminates the impact of medium and short-term volatility.It is best to seek expert assistance from an experienced financial advisor or a mutual fund provider when purchasing online SIPs or choosing the appropriate mutual fund strategy.

Select the SIP details

You must give the vital SIP details after finishing the verification process and selecting the mutual fund selection to invest in. The next step is to clarify some important parameters regarding your SIP, such as the frequency of your investment – whether you want to put money in weekly, monthly, or quarterly, a single date or many dates to pay at your convenience, duration, and the amount that can be changed as needed. You can also choose auto-debit instead of remembering the payment date and making the payment at regular intervals.

Start the SIP online

You are now ready to begin your SIP journey. You can begin investing in the SIP once you have provided the necessary information. The sum is deducted from your account, and your portfolio investment fund is shown in your online account for future reference.

While mutual funds can help you enhance your returns and create wealth over time, it is equally critical that you plan for financial assets that can protect your family in the event of your untimely death. And it is an absolute must if you are the sole earner in your family.

Read More : Importance of Long-Term Investment in Mutual Funds


Investing in financial instruments such as mutual funds can help you build wealth while taking into account your various sources of income and risk profile. A systematic investment plan is a technique for investing in such mutual funds on a regular basis throughout the course of a long policy duration.

You can begin by monthly investment schemes in the SIP by analysing your financial goals,and a fund option, completing the KYC verification, submitting the SIP details, and investing.

CA Mukesh Gupta
CA Mukesh Gupta
Mukesh Gupta is the founder and director of Wealthcare. He is Fellow chartered accountant, Certified Financial Planner and Certified Public Financial advisor. He is in financial services industry since 1994. He conducts free money management sessions for corporates and associations on topics related to Personal finance. His previous engagement was with Birla Sunlife group. He regularly writes on topics related to Personal finance and occasionally appear on electronic media.

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