All About Mutual Funds

How to Start a SIP

Systematic Investment Plans (SIPs) are one of the most disciplined ways to invest in mutual funds. They allow you to invest a fixed amount at regular intervals, helping you build wealth over time. Once you start a SIP, the investment amount is automatically debited from your bank account and allocated to mutual fund units based on the prevailing Net Asset Value (NAV).

Each SIP installment adds more units to your portfolio, and over time, compounding helps maximise returns. The flexibility to decide your investment amount, frequency, and tenure makes SIPs an excellent choice for beginners and seasoned investors alike.

Steps to begin investing via SIP

Step 1: Keep your documents ready

Before you start investing, ensure you have the necessary documents to complete the Know Your Customer (KYC) process. You will need:

ID proof (Aadhaar card, voter ID, passport, etc.)

PAN card (mandatory for all financial transactions)

Address proof (utility bill, driving license, passport, etc.)

Bank account details (account number, IFSC code, and a canceled cheque for auto-debit setup)

Ensuring your documents are in order will help you complete the process smoothly.

Step 2: Complete your KYC

KYC compliance is mandatory to invest in mutual funds in India. You can complete this process through:

Online KYC (e-KYC) – Submit your PAN, Aadhaar details, and verify using an OTP. Some platforms may require a video verification.

Offline KYC – Fill out a physical KYC form and submit it along with your documents at an authorized financial institution.

Once your KYC is verified, you can proceed with your SIP investment.

Step 3: Register for a SIP

To start a SIP, you must register with an Asset Management Company (AMC), a brokerage firm, or an online investment platform. You will need to create an account, provide your details, and choose the mutual fund scheme you wish to invest in.

Step 4: Choose the right mutual fund

Selecting the right mutual fund is crucial for maximizing returns. Consider these factors:

Investment goal: Are you investing for short-term goals (1-3 years) or long-term wealth creation (5+ years)?

Risk appetite: Equity funds are riskier but offer higher returns, while debt funds are more stable with moderate returns.

Fund performance: Check past performance, fund manager experience, and expense ratio before investing.

If you are unsure, opt for hybrid or index funds, which balance risk and reward efficiently.

Step 5: Decide your investment amount

SIPs allow you to start investing with as little as ₹500 per month. The amount should be based on your financial goals, expenses, and investment horizon.

A good approach is to increase your SIP amount periodically using the SIP top-up feature to accelerate wealth creation.

Step 6: Select SIP date and duration

You can select a SIP date that aligns with your cash flow, such as salary credit dates. Most AMCs allow SIPs on multiple dates in a month. The tenure can be for a fixed period (e.g., three to five years) or perpetual.

Step 7: Submit your SIP application

After choosing your plan and amount, submit your SIP application online or offline. You can register for auto-debit via:

E-mandate or net banking for seamless online transactions

NACH (National Automated Clearing House) for auto-debit from your bank account

Once registered, your SIP will be processed automatically as per the chosen frequency.

How to start a SIP online

Investing in SIPs online is quick and hassle-free. Here’s how you can do it:

Visit the mutual fund company’s website, broker app, or investment platform like Ventura.

Complete the KYC process if you have not already.

Browse and select a mutual fund scheme that aligns with your goals.

Choose your SIP amount, date, and frequency (weekly, monthly, or quarterly).

Set up auto-debit by linking your bank account through an e-mandate.

Confirm and start your SIP.

Your first installment will be deducted, and the SIP will continue as scheduled.

How to invest in SIP for beginners

If you are new to SIPs, here’s why they are an excellent investment option:

Start small by investing as little as ₹500 per month

Benefit from the power of compounding by reinvesting earnings

Take advantage of rupee cost averaging by investing at different market levels

No need for a Demat account since you can invest directly through AMCs or online platforms

Beginners should start with diversified funds like index funds or hybrid funds before moving to sectoral or thematic funds.

Platforms to start SIPs

You can start investing in SIPs through multiple platforms, such as:

1. AMC websites (direct investment)

AMCs (mutual fund houses) allow direct SIP investments through their websites, offering lower expense ratios and better returns.

Ventura Securities provides a seamless way to invest in SIPs with expert research, portfolio tracking, and lower costs. By investing directly with Ventura, you get personalized recommendations and an easy-to-use platform for all your mutual fund needs.

2. Broker apps and investment platforms

These platforms provide a user-friendly interface, research tools, and consolidated tracking of all mutual fund investments.

Ventura Securities offers a simple and efficient SIP investment process through its platform. With expert market insights and low-cost investing, Ventura makes it easy to start and grow your mutual fund portfolio.

3. Banks and financial institutions

Many banks offer SIP investment services through their net banking portals, allowing customers to invest conveniently.

Conclusion

Starting a SIP is one of the best ways to build long-term wealth with minimal effort. It instills financial discipline and makes investing accessible to everyone. Whether you are a beginner or a seasoned investor, SIPs help mitigate market volatility while ensuring steady growth.

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