Contrary to popular belief, there is no need to visit your brick-and-mortar bank to complete the formalities before starting the SIP. Investors can easily start the SIP from the comfort of their home. There are various fund houses that allow the investors to complete the paperwork online without doing much legwork.
There are many similar interesting snippets about SIP in Mutual funds you ought to know. Here is our compilation of the top 5 things to know how to invest in SIP online:
1 KYC-The first thing that you must know before initiating the SIP is to fulfil the KYC obligation. It is a necessary document to get kick-started. The investor needs to submit their identity proof, address proof, a photograph, and a proof of their physical existence through an In-person verification call.
The investor can easily complete the formalities electronically by clicking on the e-KYC link. There are a handful of fund houses like Birla Sun Life, Quantum that offers the facility through their website. You just need to follow the black and white instructions written on their website.
If you don’t want to visit each and every fund house website separately, CAMS KRA is an alternative solution to know how to invest in SIP online. This is a centralised platform where the investor can get a repository of information for every mutual fund scheme.
2 Upload the documents– The steps for eKYC may differ from one fund house to another. However, the roots will remain the same.
- Fill in the basic information– The system would prompt you to submit the personal information through an online form. It would include the details like name, date of birth, mobile number, address where you reside, alternative address, etc.
- Scan and Upload the documents- After filling the basic information, the investor needs to upload the scanned documents like PAN card and address proof to validate the transactions.
3 Verification Process-Once the documents are attached to the fund house, they will ask you about the suitable time slot and call you to confirm your physical existence through the IPV call. For this, the investor needs to keep their PAN card and address proof handy as they may ask you to show it during the call.
4 Aadhar based verification-UIDAI has made the filing procedure simpler by introducing the Aadhar card and linking the same to the PAN card. Now, the investors need to enter the Aadhar card number details which would be authenticated the same with UIDAI by sending an OTP.
Completing the procedure through Aadhar doesn’t require IPV through a video call. UIDAI database has stored biometric details of the investor, but there is a statutory restriction that doesn’t allow the investor to invest more than Rs 50,000 in a financial year without submitting the PAN details. The limit can be breached after submitting the PAN details.
5 Login– In the last step on how to invest in SIP online, the investor needs to visit the website and look out for the registration link for a new account. It will direct you towards a simple form on how to get started with a particular fund house.
The fund house may ask you chequebook details and an OTP that will be generated on your mobile. Once you have completed the registration process, you can select the SIP scheme depending on how much risk that you can stomach and the time horizon.
With these steps, you can achieve financial independence by investing in SIP online.