What is SIP – How to invest in SIPs Online


SIP is an abbreviation of Systematic Investment Plan. This Systematic Investment Plan (SIP) is concerned with a policy that allows the investor or subscriber to invest the same amount of money in a certain mutual fund at every specified time. When individuals commit to an investment in a certain mutual fund through the Systematic Investment Plan policy, he would understandably wish to keep tabs on the returns he earns on that investment. For this purpose, there exist several SIP calculator that allow the investor to do just the same.

Before you decide to invest in SIP online, you must get accustomed to the best SIP plans in India in 2020. With this article, you will learn how you can increase your SIP by investing in the best SIP plans in India.

Best SIP plans

Here are some of the most reputed and beneficial SIP plans in the market, among which you can compare and choose the one that suits you best.

  • ICICI Prudential Blue-chip Fund- This mutual fund policy is open-ended. This scheme invests 85% or more of its resources in equity shares of large capitalist corporations. This is done to fulfil your goal of formulating long-term capital appreciation. The returns earned by investments through this policy in the years 2019, 2018, and 2017 were 2.3%, 19.1%, and 19.8% respectively.
  • Nippon India Pharma Fund- This policy aims to invest in equity and equity-related shares of large Pharma companies or similar associations. Under this scheme, the goal is to earn consistent returns on your investments. The returns generated by investments through this scheme in the years 2019, 2018, and 2017 were 1.7%, 3.6%, and 7.6% respectively.
  • Kotak Gold Fund- The Kotak Gold Fund aims to earn returns on investments by investing in units of Kotak Gold Exchange Traded Fund. This policy runs with a moderately high risk. The returns gained by investments through this scheme in the years 2019, 2018, and 2017 were 24.1%, 7.3%, and 2.5% respectively.
  • SBI Gold Fund- The main objective of the SBI Gold Fund policy is to produce returns that closely resemble the returns gained by SBI-ETF Gold. The returns earned through this scheme in the years 2019, 2018, and 2017 were 22.8%, 6.4%, and 3.5% respectively.
  • HDFC Gold Fund- This scheme aims to invest in HDFC Gold Exchange Traded Fund (HGETF). By investing in these units, this policy aims to generate capital appreciation. The returns gained by investing through this scheme in the years 2019, 2018, and 2017 were 21.7%, 6.6%, and 2.8% respectively.

How to increase SIP:

Increasing the amount of SIP plans midway is not offered by most financial institutes. Most of these corporations do not recognize the process of refuelling an existing SIP. However, evolving funding houses have comprehended this process and allow their subscribers to enjoy this service of doing a SIP top-up.

Now, to top-up an existing Systematic Investment Plan, you are required to communicate with the mediator through which the original Systematic Investment Plan was initiated.

According to research and expert opinion, one thing you might want to consider before increasing your Systematic Investment Plan is the correct timing along with your aims and monetary resources available.

How to invest in SIPs online:

Systematic Investment Plans or SIPs is a mechanism that enables you to invest small portions of your monetary resources, regularly in mutual funds. The regularity of your investment completely depends on you. It may be daily, weekly, monthly, quarterly, etc.

Systematic Investment Plans are becoming increasingly prevalent among mutual fund investors. According to mutual fund experts, systematic investment plans are the paramount way of investing in the market intermittently.

Now the steps to invest in SIPs online are as follows,

  • Required documentation- the first step is to complete the basic documentation before initiating a SIP online. The required documents are a PAN Card, a permanent address proof (driving license/utility bill/bank statement), a passport-sized photograph, and a chequebook. The chequebook is required to provide your bank details. Having an Aadhaar Card, although not compulsory, would comparatively streamline the process of documentation.
  • Require KYC completion- KYC, meaning ‘Know Your Customer’ is a vital part of any documentation process. Just like in any other official business, before investing in mutual funds, it is compulsory to comply with KYC requirements. This is proof of your identity. You only have to go through the KYC proceeding once, no matter how many mutual funds you intend to invest in. KYC requires your Name, DOB, address, mobile number, etc. Several financial institutes offer an electronic channel called eKYC which will allow you to complete your KYC online.
  • Invest in SIPs online- After you are done with the completion of your KYC, you can proceed towards searching for a fund house that offers the systematic investment plan that you want to invest in. Before you make a decision, you should be well-informed of all SIP plans so that you can select the one that is most beneficial to you.

After registering for a Systematic Investment Plan (SIP) online, it typically takes a gap of about 30-40 days before your SIP is initiated. You must research throughout all the available financial institutes and explore the various SIPs that they offer. This will help you become well-informed before you choose the SIP that is compatible with your financial goals and objectives. Also, remember to take help from a SIP calculator.

Like all securities, mutual funds are subject to market, or systematic, risk. All investments in market related securities such as SIP should be made only after reading all scheme related documents.


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