How to Open a SIP Account Online in India 2024? [Step by Step Process]

7 Mins

What is SIP account?

When you have decided to invest in best SIP mutual funds, the next step which follows is the way in which investment can be made. You can either invest lump-sum money at any particular time or invest some amount weekly, monthly, quarterly which we call as Systematic Investment Plan(SIP).

In SIP, a fixed sum is deducted from the investor’s savings account and is parked towards the chosen mutual fund.

You can either invest yourself or put the same on auto-debit mode wherein the amount will be deducted on a specified date at the start of the month.

It is important to make sure that you do not invest in too many funds. Ideally, only 3-4 funds should form part of your portfolio which has been providing consistent returns.

How to open SIP account?

If you are looking for more discipline in your investment habits, SIP’s can help you do that. It allows you to make small investments in SIP towards the mutual funds and also providing you with the convenience of investing amount as low as Rs. 500. You can estimate the maturity value of your SIP investments by using Scripbox’s Mutual Fund SIP calculator

Before you can actually start investing, you need to complete certain formalities in order for your SIP account to be operative. Below is the procedure involved in the same:

Step-1: Complete your KYC. This requires you to submit the basic details such as name, address, etc. to the KYC KRA Agency. This verification is done either through video calls or through Aadhar OTP. Once verification is done, you can start investing.
Step-2: Register for a SIP in the mutual fund scheme of your choice. You can evaluate the funds by their asset size, the number of years in the market and the returns over a period of 3 to 5 years.
Step-3: Select the right SIP and the time of investment. Update the bank account details from wherein the amount should be deducted

KYC Documents to Open SIP Account

The KYC process is the first step towards investing in mutual funds. It is usually a one time process wherein your personal details are verified by an Agency. Post this, you can start investing in any fund.

The KYC Registration Agency(KRA) will verify your name, address, office address, etc. This is mandatory for all investors. Following are the required details that need to be submitted/uploaded on the KYC portal:

Identity proof
- PAN Card
- Passport
- Voter’s Identity Card
- Aadhaar Card
- Driving License
Address proof
- Latest Utility Bills
- Bank Statement
- Letter from your employer
Copy of cancelled cheque of the bank account that you want to associate.
Passport-size photograph

SIP Account Verification Process

Once you have the above documents, you can upload the same on the website of the fund house that provides e-KYC facilities by making a simple login.

In-person verification

Once the details are uploaded, an in-person verification is required to complete the entire process. Once the documents are verified, your KYC is done.

To make KYC simpler, you can also now complete the verification through Aadhar based e-KYC. This requires you to visit the KRA’s website and enter the basic details such as your name, contact details, PAN card details, etc. and enter the OTP send to your registered mobile number with UIDAI.

There are a few benefits of doing your KYC through Aadhar. Following are some of the benefits:

Lesser details required
Automatic data fetching from the UIDAI database if the registered mobile number is correct
No need for video verification call in such case
Lesser chances manual error

Once this verification is done, you can start investing.

How do Scripbox SIP Accounts Work?

Scripbox’s SIP account helps you invest regularly in the chosen mutual fund. Select the mutual fund of your choice and decide the amount and frequency of the investment.

Next, provide a mandate to your bank to enable automatic debits. The investment amount will then be automatically debited from your bank account on the specified date.

With Scripbox SIP Account you can stop the SIP, pause, top up, or change the amount and frequency of the investment at any time. Furthermore, you can redeem your investments anytime.

Benefits of SIP Accounts

The following are the benefits of SIP Accounts:

Convenience: SIP is a convenient way of investing in mutual funds. The investment process is automated. The investment amount is deducted on the specified date, eliminating the need for manual intervention for each transaction.
Flexibility: With SIPs, you can invest a suitable amount in a mutual fund regularly. Furthermore, you can pick the SIP frequency and change or modify your SIPs anytime.
Low Investment Amount: You can invest in SIPs with as little as INR 500. Thus, SIPs are suitable for all types of investors. With regular investments, you can gradually build a significant corpus over time.
Power of Compounding: When you invest in a growth option, the monthly earnings generated by the SIP will be re-invested. Consequently, your investment gets compounded over time, this facilitates in generating exponential returns.
Rupee Cost Averaging: When investing in mutual funds for the long term, SIPs help with rupee cost averaging. Regular investments help in acquiring fund units irrespective of the market movements. If the fund’s NAV is high, you will acquire fewer units. If the NAV is low, you get more number of units. Ultimately this helps in averaging the cost and mitigating the impact of market volatility.
Long-term Investment: SIPs are suitable for the long term. You can invest small amounts regularly and create a corpus to achieve your long-term goals.

Frequently Asked Questions

How to Open SIP Account online with Scripbox?

One can invest in mutual funds SIP online on any platform that offers mutual funds. Scripbox is one such platform that offers mutual funds. To invest with Scripbox, one has to follow the steps below:
Create a Scripbox account and login using your credentials. Then, select a plan based on your goal and click on ‘Start Investing’. Next, select ‘SIP’ and make changes to the recommended funds and the amount to be invested (if needed). Finally, pay using UPI or net banking. Since ‘SIP’ is selected, the money will be automatically debited every month on the date chosen by you.
A lumpsum investment is a better option when you have a lumpsum value in-hand to invest. An SIP is on the other hand a disciplined approach towards mutual fund investment. Both the options have their own pros and cons. Know more about SIP vs lumpsum investment before investing.

What are the benefits of opening a SIP account?

If you are looking for financial discipline, SIP’s can help you to achieve the same. It allows you to invest a fixed amount in a particular month and enables you to track your investments conveniently. You can start investing through SIP with an investment of amount as low as Rs. 500. You can create a SIP in 3-4 funds based on the returns over the years and follow a disciplined approach to invest the fixed amount monthly.