Steps to follow:
- To start your systematic investment plan online, the very first step that you have to do is to complete the KYC. KYC stands for Know Your Customer which helps the company know the basic and necessary details about the investor which are important for the SIP fund. If you want to invest into SIP, you need to register yourself with a KYC website or KYC registrar. This process has to be done so that your SIP account can be opened. It would ask you certain details like the following:
- Identity Proof
- Passport size photograph
- Permanent Account Number card
- Proof of address
Enter all these details correctly to finish the KYC process.
- The next step is to upload your details and information through your documents. The investor has to upload their PAN card – permanent account number onto the website so that it can be verified. The investor has to do this by scanning and then uploading the document.
- The next step is to be ready with a date and time that you are comfortable with so that the officials can conduct a personal verification. IPV stands for inter personal verification which is done after you have uploaded your PAN card. Now, you need to keep your certain documents handy during the verification as they can ask the investor to show the address proof and the PAN card for full verification. The IPV is done by a video call.
- Now, go to the website and make your SIP account by opening the registration link.
- After the investor has made the SIP account, they have to enter their bank details so that it can be connected to the SIP account.
- Now, a one – time password will be sent in on your SMS or e mail ID which will confirm your details. So, you have to enter the OTP onto the website.
- Your SIP account is created, Log – in!
- Now, as an investor, you have to enter certain details about your SIP account that will help process your account.
- Select the funds
The next step in the process of starting your SIP online is to find the mutual funds that you want to invest into. The mutual funds that you choose should be in accordance with your requirements and what you are looking for with a plan. The investor has full liberty to choose the mutual fund that they want to invest into out of any of the following: debt, balanced, equity, etc. You are to assess your level of risk and then select such an SIP funds that matches your risk appetite so that even if the mutual fund crashes, you do not incur losses which you cannot cope with. There are two options in which you can proceed: directly investing into asset management companies or through other available intermediaries.
- Deciding on the amount of investment you want to make
Everyone has a different amount in mind which they want to make as an investment into the systematic investment plan. So, there is no exact answer for what it should or could be! The investor has to decide upon the investment in accordance with how much they are looking to save through the SIP plan. This is the only thing that will help you with settling on an amount. How much you want to earn (your financial goals) from your systematic investment plan will directly influence your investments on either monthly or yearly basis.
The investor also has to decide upon the intervals in which they will make the payments for the SIP investment. The interval is the time period between two investment payments.
- Now, after you have made all the selections and choices, the last step of the process of SIP investment online is to submit the SIP form to the AMC – Asset Management Company. d Now, if the investor is completing the process through an investment service provider, then they do not have to bother about the submission as the SIP form will be submitted on their behalf.
KYC through Aadhar card linkage!
There is another way in which you can complete the process of your KYC and a few related steps in the process of SIP. As you might be aware of the Aadhar card identification, you also mist know that this helps us in completing many official processes. To complete the KYC, you can directly link it to your Aadhar card and it will extract all the necessary information and all the details that are necessary for the ‘know your customer’ process.
Now, you need to know that there is a certain disadvantage to this process that it will only allow the investors to invest in a sum amount of Rs. 50,000 and not more than that into their SIP account as you have not provided your PAN card details. But, if you do provide your PAN card information, then you can immediately start with investing more than INR 50,000 while adhering to the maximum limit.
The following is the process to link your systematic investment plan account with your Aadhar card: You have to enter your Aadhar card details like the number onto the KYC website. Then, you will receive an OTP (one time password) which you are to enter into the website. This OTP will be sent by UIDIA – Unique Identification Authority of India. This will fill up your details for the KYC if you would have had to fill up yourself in case you did not link your Aadhar card to it. The process of the Inter – Personal Verification (IPV) is also eliminated as you Aadhar card is your biggest proof.
Follow all the steps above to be able to invest into your SIP investment smoothly and with ease. Enter all your details correctly so that your SIP investment account can be processed well.