Starting a SIP investment is very simple.
You just need to follow a few easy steps and you will be investing into your systematic investment plan very soon.
Starting your SIP online is probably the simplest and the easiest way to do so with just a few clicks.
The online SIP process:
The first step is to complete KYC. KYC is ‘know your customer’ which is a platform where an individual who is looking to invest into a plan fill their details in so that the fund company can know about them, their demographics, etc.
To complete the process of KYC, there are two types of procedure from which you can choose on according to your convenience. Both the options are explained below:
- KYC registration fill up
- KYC registration linkage to Aadhar card
KYC registration fill – up
You have to go to a KYC registration website or a KYC registration agency, first. Now, the website will ask you for details regarding certain information that the fund company needs to know to know their customer. You have to fill up the information and details correctly so that you can start with your SIP. The information that they ask is mostly on the grounds of following:
- Identity Proof
- Passport size photograph
- Permanent Account Number card
- Proof of address
KYC registration linkage to Aadhar card
Registering with your KYC by linking your Aadhar card to it is a better and easier way of completing the process of KYC. The ‘know your customer’ registration process can be done in one simple step unlike the one above.
As an investor, you must go to the website and click the link which will give you an option to link your Aadhar card to the KYC registration website.
This allows the KYC to extract information from your Aadhar card through the UIDIA – Unique Identification Authority of India and fill up the KYC. All the information that they need regarding the customer is taken after you link your Aadhar card information to the KYC account.
The biggest advantage of this process is that linking your Aadhar card will eliminate the process of the IPV – inter personal verification video call and save your time and energy on it.
There is one slight disadvantage to this process but it can be avoided as well. This process limits the amount of investments that the potential plan holder can make.
The maximum amount that you can invest into the systematic investment plan in this case is INR 50,000 and not a single rupee more than that.
But, this only happens in case you have not provided your PAN – permanent account number card to the website.
Once you do that too, you are allowed to immediately start with your systematic investment plan investments with an amount more than INR 50,000. The UIDIA – Unique Identification Authority of India has made many processes hassle free and convenient.
The next that you have to do, as an investor, to start your systematic investment plan – SIP investment is to upload your documents onto the fund website. Uploading your documents is necessary for the fund company to verify your details.
You have to scan your documents and then click to upload them onto the site. The document that you have to do this with is the PAN – permanent account number card. Uploading is a very simple step as you first have to scan and them just click upload on the website and select the file to attach.
Now, you have to be verified by the fund company and the verification process has never been as simple as what you will have to go through. The verification is done through IPV. IPV stands for Inter – Personal Verification.
This is a process in which the verifier calls the potential investor through a video call to verify them. While this process is being done, you need to make sure that you keep your address proof as well as your PAN card handy as the verifier might ask you to show them up for further verification.
This is a very simple step as all you need to do is have an internet connection, preferably a strong one and also make sure that you are in a place with less commotion to make sure the process goes smoothly.
If you do not have a device that could connect to the internet, then you can also go to a nearby cyber café to complete the process. The verifier will, beforehand, ask you for a specific date and time that you will be available to take the video call which makes it even more convenient.
After the process of IPV is completed, you have to go to the fund website and click on the registration link to open up your systematic investment plan account.
After you have opened your SIP investment account, what you need to do is that you have to enter into it your bank details so that your investments into the SIP investment account can be processed. This has to be done so that your bank can be connected to your systematic investment account.
You will, now, receive a code which will be an OTP (one time password) on your e mail ID and/or SMS and you will have to enter it into the website to confirm your contact information.
Log in into your systematic investment plan account as it has, now, been created.
This is the most important step. Now, you have to make selections regarding the type, nature and duration of your SIP plan. After you make the selections, your investments can start.
Investing into the systematic investment plan online is the best way to do so because of the convenience and the time saving feature that it has. SIP investment online is the way to go!