SIPs are the most preferred method of investing in mutual funds in India. But before we tell you how to start a SIP online, did you know what are Mutual Fund SIPs and its benefits
An online mutual fund SIP can be started by visiting the AMC website or the website of your financial advisor provided he or she has provided this facility on their website. Irrespective of from where you want to register a mutual fund SIP online, the technology has enabled investors to make investments in mutual funds easier, faster, simpler and truly paperless.
However, before you want to start the online SIP investment, you have to make sure that you fulfil Mutual Fund KYC (Know your customer) formalities, if you are not KYC compliant already.
How to make an online KYC
Keep scan copy of your Aadhar Card as ID proof, PAN Card and address proof. You can complete this requirement electronically through eKYC module available with mutual fund registrars (RTAs) like CAMS, Karvy and Sundaram BNP Paribas.
As you have AADHAR number, it would simplify the above procedure. The moment you enter your AADHAR card number, an OTP is sent to your registered mobile number with UIDAI. You have to authenticate the details with the OTP (One-Time Password) sent by UIDAI. Once it is authenticated, it will pre-populate the form with all your personal details available in the UIDAI database. Completing the eKYC procedure through AADHAR will not require any IPV (in person verification).
As a next step, you will be asked to upload scanned copy of your PAN (Permanent Account Number) card and AADHAR Card scan copies.
Please note that eKYC is a centralised and one time procedure and therefore you need not repeat the process separately with each AMC you wish to invest or with the R&T agent.
Start the online registration process for your SIP investment – Once your eKYC is made or you are already Mutual Fund KYC compliant, visit the AMC website whose fund you want to buy or visit our website http://meetplutus.com and click on http://meetplutus.com/signup. We will ask your name, mobile number and email ID which we will verify through a weblink and OTP sent to the email you have provided while registering with us.
Post this verification, you need to follow the steps like, filing up the personal details, communication address, nominee details,bank details and answer few FATCA questions. In one of the steps we will ask you to upload your cancelled cheque and your signature. You can sign with black ink on a white paper and upload the image or alternatively you can sign on the screen using your mouse).
In the next step you will be redirected to a page from where you can select the AMC in whose scheme you want to invest, select the fund category and the scheme name and the monthly SIP amount. Other than this you will have to provide start and end date of your Mutual Fund SIP investment. Once these are selected, you will be redirected to the net-banking page of your bank from where you can pay online using your net-banking account.
(Please note that a gap of 30 days is required to start the SIP ECS mandate (it enables auto debit of future instalments from your bank account)
For those investors who are mutual fund KYC compliant,can visit the AMC website and start the paperless SIP investing in few steps.
You can invest in any mutual fund scheme from any place and at any-time without any hassle. However, more than starting a SIP online, it is important to select the right mutual fund schemes suiting your risk profile. We at http://meetplutus.com have made it simpler as you can now select the best funds in few steps by using our robo advisory tools http://meetplutus.com/mutual-funds-research/sip-robo-advisor. Once you have selected the right funds this tool helps you in setting up your mutual fund SIP online and helps you track your SIP investments from our mutual fund portfolio tracker.