Here is a comprehensive list of information that you must be informed with if you are keen to invest in Mutual Funds (irrespective of SIP mode or as bulk investment):
1. Know Your Customer (KYC) Document: The first step to investing into SIP is to know if you are KYC compliant. This is the must & the primary step to be aware that you have completed the formalities related to KYC. This is only a one-time step after which you can chose to invest in any mutual fund in India as per your preference. You can make it either online/ offline. In case you are comfortable having it offline, then you can always visit the nearest authorized centers to verify the documentation and check if you are KYC compliant. However, if you are making it online, you just need to fill your KYC form, submit your address proof, identity proof through PAN or Aadhar Card and passport size photograph. This is just a one-time exercise. You can get this done online through eKYC.
2. Identify the right fund as per your convenience: This is the most important point that needs to be well thought of. Plan your funds: You need not to be biased with anybody’s opinion or pick up the fund that your broker suggests. You can either make your investments through Asset Management Companies or through Intermediaries. Such companies are the organized information centers who would do a complete market study, market trends, fund performance and suggest you the right fund whether equity or debt or any other funds as per your requirement.
3. Decide Your Monthly Investment Amount: After you have completed the first two steps, then the next most important step is to deciding on the amount that you wish to invest into sip. In the application form, you got to specify how much amount you want to invest. If you wish to meet a financial set goal then invest accordingly. You can always use online SIP calculator to know how much amount you should be investing at a regular point in time.
4. Decide Your Payment Date: Scheduling your investment is also an important step in SIP investments. So, discipline yourself which one is convenient to you. If it Weekly, Monthly, Quarterly or half-yearly. After that decide on which date you want to make the payments. Please be very careful in finalizing this date because if once fixed, this will be fixed forever, thus choose wisely.
5. Choose on the mode of payment: After you have completed all the necessary step, then the next understanding is to choose the mode of payment whether you would prefer auto debit from your savings account of your bank or through post-dated check.
6. Submit Your Form: The last step is submitting your completed form. If you are a beginner, we recommend to get it through a professional, then everything will be very convenient as you would have the timely advice of experts.