Stocks

February 26, 2024

How to Start SIP Investment Online in 5 Simple Steps

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Shakshi

Project Manager

SIP, a Systematic Investment Plan, is an approach to investing periodically. The SIP brings financial discipline into an individual's life and allows them to invest in small amounts like Rs. 500 and 1000 in mutual funds and indirectly in stocks. The SIP in mutual funds grants your participation in the market with limited risk. It's considered the best way to invest with balanced growth opportunities and preservation of wealth. 

But how to start SIP? Which SIP is good? How do you start SIP in a bank like HDFC, ICICI, Kotak, Mahindra, etc? These queries hit our heads when we think of investment with SIP. 

In this blog, we have answered all queries and simplified the way of SIP Investment in 5 simple steps to make it a cakewalk for you. Let's dive deep into this piece to learn about SIP investment in India.

What is SIP in Mutual Funds? 

SIP is an acronym for Systematic Investment Plan that allows investors to invest in mutual funds. In this investment,  the investors choose a mutual fund scheme, a defined amount, and a fixed interval to put their money more market. The investors can select to start auto-pay for these investments or memorise the investment date. The predetermined investment influences the individual mindsets for savings. It makes them invest with a goal-oriented approach by offering the flexibility to change the date and amount of investment according to their current financial conditions and understanding of the market. 

Individuals can invest with SIP in MNCs, banks, and national and emerging companies’ funds. They can take different approaches to investing in SIP through brokers, online, or by visiting the nearest bank branch, investor service centre, or Registrar & Transfer Agents. 

Online investment in SIP allows you to become your own finance manager. With it, you can also learn about the market, offering you the experience of taking high risks to make a profit. From the various online SIP apps available select the more suitable SIP investment app for you and install it on your device. 

Start SIP Online in 5 Simple Steps 

  1. Sign Up on Online Trading App

Use your mobile number, email address or google account to sign up on the trading platform. Now add essential information like your name, date of birth, mobile number, PAN number, bank details etc. In addition, you can open your demat account at the online trading platform for SIP investment. The demat account is not compulsory for SIP investment but allows you to invest directly in mutual funds. 

  1. Do Your KYC 

KYC, Know Your Customer is a crucial step to start investing in SIP. To do your KYC, you can visit any of the Indian banks and authorised KYC centres. You can also apply for online KYC, you’ll need to fill a form with personal details, declaration of your investment, documents like driving licence, aadhar card, pan card etc. 

  1. Explore SIP Funds 

Now, when your account is ready to invest. Explore different SIP options by navigating the mutual fund option on your app. View different kinds of SIP categorised with high returns, SIP with small amount, tax saving SIP, large cap SIP, Mid Cap SIP, Small Cap, risks etc. You can also explore the SIPs of different companies. 

  1. Choose Your SIP Plan 

After analysing the different funds, select the right SIP for you according to its benefits, your risk bearing capacity, and the minimum amount required to start it. Once, you choose the SIP plan, select the amount you want to invest and fix a date bi-weekly, monthly, quarterly and annually as per your convenience and flexibility. 

  1. Start Investment 

When you select the fund, date, and amount, start investing in the fund. To ensure you don’t miss the SIP date, setup auto-pay for it. With the SIP investment, you can diversify your wealth and investment. In the SIPs, you can also top-up the balance, pause it and retrieve it as needed.  

Things you must consider before investing in SIP 

  1. Your goal to invest 

Identifying your investment goal, whether short-term or long-term, lets you consider which schemes you need to select and how much you need to invest in SIP. 

  1. Your risk-bearing capacity 

Similarly to the stock market, SIP investments include different risk levels depending on the type of fund. Consider your risk-bearing capacity before making the investment. There are various types of SIP options like hybrid, dynamic and more. 

  1. Exit load of the SIP Plan 

Exit load of the investment is the fee charged by AMCs (Asset management companies) for exiting from the SIP investment before the fixed period. Exit loads can be different for each fund. For example, One SIP can have a 1% exit load if you exit the fund in one year, or another SIP can have a 0.25% exit load if you exit from the fund in one week. You can check the exit load of the fund. 

  1. Cash & Scheme holdings 

Before considering a fund for investment, one must check the scheme holdings. The scheme holdings inform you about the type of company in which the money is invested. Moreover, you can also check the cash holdings of the fund. The fund that has higher cash holdings includes lower risk, which may not be so beneficial if you are looking for high returns. 

  1. Return you can expect

Before investing in SIP, it’s also important that you learn how much return you can expect with your investment. The SIP calculator helps you calculate the return on your monthly investment. To do so, you are just required to share the investment amount and time period to learn the estimated return.

Conclusion 

Investment in SIP is for beginners with low risk and more diversification options. This investment is the best for the long term, with the flexibility to withdraw anytime. Starting investment with SIP is the best way to deal with stocks, but not directly getting affected by market fluctuation. However, the SIP investment is also subject to market risk. Hence, it’s always recommended to invest smartly, keep learning about the market and make investments by calculating all the risks and profits.

Gopocket is one of the best online trading apps to do SIP investment. Here, you can find various SIP schemes to invest in. Leverage its market insights, SIP calculator, and convenient interface to invest in mutual funds with SIP at your fingertips. 

FAQs Related to SIP

1. Which bank is best for SIP?

If you want to invest with a bank-associated SIP scheme. They are available with very high, high, moderate, low, or very low risks. Some of the best bank SIPs are

  • SBI
  • ICICI
  • Kotak 
  • HDFC
  • Canara bank

You can check their different mutual fund schemes, risks, scheme holdings, fund categories, etc., before investing. 

2. How much money do I need to start SIP?

You can start your SIP with a minimum Rs. 100 investment. However, the minimum amount for SIP depends on your selected fund. 

3. Can I withdraw SIP anytime?

Yes, you can withdraw your money anytime from SIP. However, there can be some exit load for some fixed period that can affect your overall portfolio return if you make redemption requests before the specified period. 

Note: Gopocket doesn’t promote any fund to invest in. You must consider your financial status, risk-bearing appetite, and market knowledge before investing.

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How to Start SIP Investment Online in 5 Simple Steps

February 26, 2024

SIP, a Systematic Investment Plan, is an approach to investing periodically. The SIP brings financial discipline into an individual's life and allows them to invest in small amounts like Rs. 500 and 1000 in mutual funds and indirectly in stocks. The SIP in mutual funds grants your participation in the market with limited risk. It's considered the best way to invest with balanced growth opportunities and preservation of wealth. 

But how to start SIP? Which SIP is good? How do you start SIP in a bank like HDFC, ICICI, Kotak, Mahindra, etc? These queries hit our heads when we think of investment with SIP. 

In this blog, we have answered all queries and simplified the way of SIP Investment in 5 simple steps to make it a cakewalk for you. Let's dive deep into this piece to learn about SIP investment in India.

What is SIP in Mutual Funds? 

SIP is an acronym for Systematic Investment Plan that allows investors to invest in mutual funds. In this investment,  the investors choose a mutual fund scheme, a defined amount, and a fixed interval to put their money more market. The investors can select to start auto-pay for these investments or memorise the investment date. The predetermined investment influences the individual mindsets for savings. It makes them invest with a goal-oriented approach by offering the flexibility to change the date and amount of investment according to their current financial conditions and understanding of the market. 

Individuals can invest with SIP in MNCs, banks, and national and emerging companies’ funds. They can take different approaches to investing in SIP through brokers, online, or by visiting the nearest bank branch, investor service centre, or Registrar & Transfer Agents. 

Online investment in SIP allows you to become your own finance manager. With it, you can also learn about the market, offering you the experience of taking high risks to make a profit. From the various online SIP apps available select the more suitable SIP investment app for you and install it on your device. 

Start SIP Online in 5 Simple Steps 

  1. Sign Up on Online Trading App

Use your mobile number, email address or google account to sign up on the trading platform. Now add essential information like your name, date of birth, mobile number, PAN number, bank details etc. In addition, you can open your demat account at the online trading platform for SIP investment. The demat account is not compulsory for SIP investment but allows you to invest directly in mutual funds. 

  1. Do Your KYC 

KYC, Know Your Customer is a crucial step to start investing in SIP. To do your KYC, you can visit any of the Indian banks and authorised KYC centres. You can also apply for online KYC, you’ll need to fill a form with personal details, declaration of your investment, documents like driving licence, aadhar card, pan card etc. 

  1. Explore SIP Funds 

Now, when your account is ready to invest. Explore different SIP options by navigating the mutual fund option on your app. View different kinds of SIP categorised with high returns, SIP with small amount, tax saving SIP, large cap SIP, Mid Cap SIP, Small Cap, risks etc. You can also explore the SIPs of different companies. 

  1. Choose Your SIP Plan 

After analysing the different funds, select the right SIP for you according to its benefits, your risk bearing capacity, and the minimum amount required to start it. Once, you choose the SIP plan, select the amount you want to invest and fix a date bi-weekly, monthly, quarterly and annually as per your convenience and flexibility. 

  1. Start Investment 

When you select the fund, date, and amount, start investing in the fund. To ensure you don’t miss the SIP date, setup auto-pay for it. With the SIP investment, you can diversify your wealth and investment. In the SIPs, you can also top-up the balance, pause it and retrieve it as needed.  

Things you must consider before investing in SIP 

  1. Your goal to invest 

Identifying your investment goal, whether short-term or long-term, lets you consider which schemes you need to select and how much you need to invest in SIP. 

  1. Your risk-bearing capacity 

Similarly to the stock market, SIP investments include different risk levels depending on the type of fund. Consider your risk-bearing capacity before making the investment. There are various types of SIP options like hybrid, dynamic and more. 

  1. Exit load of the SIP Plan 

Exit load of the investment is the fee charged by AMCs (Asset management companies) for exiting from the SIP investment before the fixed period. Exit loads can be different for each fund. For example, One SIP can have a 1% exit load if you exit the fund in one year, or another SIP can have a 0.25% exit load if you exit from the fund in one week. You can check the exit load of the fund. 

  1. Cash & Scheme holdings 

Before considering a fund for investment, one must check the scheme holdings. The scheme holdings inform you about the type of company in which the money is invested. Moreover, you can also check the cash holdings of the fund. The fund that has higher cash holdings includes lower risk, which may not be so beneficial if you are looking for high returns. 

  1. Return you can expect

Before investing in SIP, it’s also important that you learn how much return you can expect with your investment. The SIP calculator helps you calculate the return on your monthly investment. To do so, you are just required to share the investment amount and time period to learn the estimated return.

Conclusion 

Investment in SIP is for beginners with low risk and more diversification options. This investment is the best for the long term, with the flexibility to withdraw anytime. Starting investment with SIP is the best way to deal with stocks, but not directly getting affected by market fluctuation. However, the SIP investment is also subject to market risk. Hence, it’s always recommended to invest smartly, keep learning about the market and make investments by calculating all the risks and profits.

Gopocket is one of the best online trading apps to do SIP investment. Here, you can find various SIP schemes to invest in. Leverage its market insights, SIP calculator, and convenient interface to invest in mutual funds with SIP at your fingertips. 

FAQs Related to SIP

1. Which bank is best for SIP?

If you want to invest with a bank-associated SIP scheme. They are available with very high, high, moderate, low, or very low risks. Some of the best bank SIPs are

  • SBI
  • ICICI
  • Kotak 
  • HDFC
  • Canara bank

You can check their different mutual fund schemes, risks, scheme holdings, fund categories, etc., before investing. 

2. How much money do I need to start SIP?

You can start your SIP with a minimum Rs. 100 investment. However, the minimum amount for SIP depends on your selected fund. 

3. Can I withdraw SIP anytime?

Yes, you can withdraw your money anytime from SIP. However, there can be some exit load for some fixed period that can affect your overall portfolio return if you make redemption requests before the specified period. 

Note: Gopocket doesn’t promote any fund to invest in. You must consider your financial status, risk-bearing appetite, and market knowledge before investing.

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