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Guide to Open a SIP Online by Fulfilling KYC Norms

Guide to Open a SIP Online by Fulfilling KYC Norms

A systematic Investment Plan (SIP) is a great tool for Mutual Fund (MF) Investors. It assists you to make regular investments in the market. You can put a fixed, lump-sum, and a small amount of money in various schemes. The amount can be as less as Rs. 500 to Rs. 1,000. The same is deductible from the savings account you specify. Investment is monthly towards the MF.

You can invest in a Systematic Investment Plan online. Several reliable platforms help you to do so. But firstly, you need to complete your e-KYC for a hassle-free process. In the following post, we will discuss the benefits of SIP, and how to register for it on the internet.

What is the Benefit of a Systematic Investment Plan?

Here are the SIP benefits:

  • SIP allows you to mitigate the risk of the turbulent market. It helps you to invest small amounts every month without any repercussions.
  • You earn compound interest by investing in Mutual Fund through a SIP. Thus, you earn interest on the principal amount as well as the interest generated on the invested principal.
  • For instance, you invest Rs. 2,000 in a Mutual Fund which provides return at 10% rate.
  • Then after a year, you will earn Rs. 200 on this sum. So, the amount increases to Rs. 2,200.
  • For those who have just entered the world of investment, SIP is one of the best options to put their money into as it mitigates the risk of a potential market crash.

How to Complete the Digital KYC Process?

You can steer away from a mountain of paperwork with 100% online documentation. The ‘Know Your Customer’ process includes verification of your identity and address. For this, you have to provide government-recognized identity and address proofs. It also requires you to furnish proof that you are alive. This is possible through In-Person Verification or IPV.

The documents give a clear idea about your demographics and other details. It is mandatory to comply with KYC norms to open a Demat account, bank account, investing in a Mutual Fund. Here are the KYC verification documents:

  • Identity Proof: PAN Card, Driving Licence, Passport, Ration Card with photograph, Voter’s ID Card, Bank Passbook with photograph, Photo Identity proof by State or Central government, Identity Card of a Board of Education or University like CBSE, ISC, etc., Employee Identity Card from a public sector or listed company, Letter from a recognized public serval or public authority.
  • Address Proof: Driving License, Gas Bill or Consumer Gas connection card, Passport, Lease Agreement or rent receipt of the last 3 months, Bank Account Statement, Voter’s Identity Card, Credit Card Statement, Employer’s Certificate for residence proof, telephone boll (landline, wireless, mobile, etc), Electricity Bill not more than 6 months old, House Purchase Deed,

The In-Person Verification is where you have to meet an authorized representative person face-to-face. It can be the Mutual Fund agent or bank official. These days, this is possible over a simple video KYC. You may have to follow the steps on the company’s app or website.

Then take a short video of few seconds for the procedure. You can also visit your MF branch to verify the documents. To complete the e-KYC process, you need to perform identity and address verification through Aadhaar UIDAI integration.

Easy Steps to Invest in SIP Online

Here are simple steps to open a SIP online:

  1. To open a Systematic Investment Plan online, you will require KYC documents. These include address proof, PAN Card, and a passport-size photograph. Also, you will need a chequebook.
  2. It is necessary to fulfil the Know Your Customer norms to invest in mutual funds. After this, visit the official portal of the fund house. Then you can compare the SIPs, and choose the one you want to.
  3. Check for the registration option or link. Click on the same to register a new account.
  4. Then you will get access to the application form. Fill in your personal and contact details along with any other information asked. Then submit the form on the internet.
  5. You may get the option to enter a username and choose a password. You have to use these details in the future to log in to the website and complete transactions. Select the scheme you wish to make an investment in and go ahead.
  6. After successful registration, the fund house will send you a confirmation that you can start investing in a Systematic Investment Plan.
  7. You will have to give bank account details. This account should be the one from where the SIP payments will be deducted. It takes at least 35-40 days for the SIPs to start.

To Conclude

It takes hardly a few minutes to open a SIP online. You can do so from anywhere – be it home or otherwise. All you need is an appropriate device and internet connection. After which, you need to register on a SIP platform online, complete the e-KYC process, and you are good to go.

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