Different ways to set up your mutual fund SIP

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A Systematic Investment Plan or SIP offers a disciplined approach to investing while also providing the flexibility to choose your investment amount and frequency. It is an ideal way to start investing in mutual funds as it reduces the risk associated with lump-sum investments and helps you average out your cost of investment over time.

Earlier, you had to physically visit a branch in order to set up your mutual fund SIP. However, with the advent of online investing, you can now also set up an SIP with the click of a button. Here is a closer look at each method.

Offline method

You can set up a mutual fund SIP offline by visiting the nearest branch of the Asset Management Company (AMC). The steps are:

First, you will have to obtain a form from the mutual fund company’s branch or download it directly from its website.
Fill out the SIP form accurately with all details about your SIP amount, frequency, etc.
Then fill out the auto-debit National Automated Clearing House (NACH) mandate. You need to attach a copy of a cancelled check, along with the relevant KYC documents such as identity and address proof.
You need to submit these documents at the AMC’s branch office or investor service centre.

Online method

There are three different ways to set up an SIP online:

Fund house website

Many fund houses now offer online options for setting up your SIP. Simply visit their website and look for the SIP facility. In that section, you can enter your personal details, choose your SIP amount and plan, and input your bank details. Once you submit the form, you will receive a Unique Registration Number (URN). The next step is to log in to your bank account and add the corresponding fund house as a biller using this URN, after which the SIP instruction can be set up.

Distributor portals

Many corporate distributors and banks offer portals/platforms, which allow you to handle online transactions related to mutual fund investment. To set up your SIP on the portal, simply log in and navigate to the appropriate section. If you have already registered a bank mandate for auto-debit with the portal, you can use that for your SIP payments.

Closing thoughts

Setting up a mutual fund SIP online is a quick and paperless process requiring only a few simple clicks and basic bank details. The offline process is a slightly longer process but has its own set of benefits too. You may be able to discuss your SIP investment goals with an advisor face-to-face at the AMC office and get expert guidance on several schemes.

Whichever approach you choose, make sure to research your options and invest in SIP schemes that align with your investment goals! Even when starting your mutual fund SIP online, you should carefully read the mutual fund scheme’s factsheet to understand crucial details such as its asset allocation, expense ratio, risk level, recommended investment horizon, fund manager and their experience, etc. This will help you make an informed investment decision.