Systematic Investment Plans (SIPs) are a popular and effective way to invest in mutual funds, providing the benefits of disciplined investing and rupee cost averaging. With the advent of technology, setting up SIP has become easier than ever through mutual fund apps. Here’s a step-by-step guide to setting up SIPs on mutual fund apps to help you get started on your investment journey.

Choose a Reliable Mutual Fund App

The first step is to choose a reliable mutual fund app. There are several apps available, such as ICICI, Groww, Zerodha Coin, Paytm Money, and Kuvera. Look for an app that offers a user-friendly interface, a wide range of mutual funds, robust customer support, and low transaction fees.

Create an Account

Once you have selected an app, download it from the Google Play Store or Apple App Store and install it on your smartphone. Open the mutual fund app and create an account by providing your email address, and mobile number, and setting a password. You will also need to complete the Know Your Customer (KYC) process, which is mandatory for investing in mutual funds in India. This process usually involves providing your PAN card, Aadhaar card, and a photograph.

Complete Your KYC

If you are not already KYC compliant, the app will guide you through the process. You may need to upload scanned copies of your documents, and some apps offer video KYC for added convenience. Completing KYC is crucial as it verifies your identity and ensures compliance with regulatory requirements.

Link Your Bank Account

After completing the KYC process, you need to link your bank account to the mutual fund app. This is the account from which your SIP payments will be debited. Provide your bank details, such as account number and IFSC code, and authorize the app to make automatic debits for your SIPs.

Explore Mutual Fund Options

Once your account setup is complete, explore the various mutual fund options available on the mutual fund app. You can filter funds based on categories such as equity, debt, hybrid, and sector-specific funds. Most apps also provide detailed information on each fund, including past performance, fund manager details, and risk level. This will help you choose the right mutual fund based on your investment goals and risk appetite.

Set Up Your SIP

To set up a SIP, select the mutual fund you want to invest in and click on the ‘Invest’ or ‘Start SIP’ option. You will be prompted to enter the amount in your mutual fund app that you wish to invest regularly, usually on a monthly basis. Choose the date of the month on which you want the SIP amount to be debited from your bank account. Review the details and confirm your investment.

Authorize Auto-Debit

For the SIP to be executed seamlessly every month, you need to authorize the app to auto-debit the SIP amount from your bank account. This is usually done through an Electronic Clearing Service (ECS) or NACH mandate. The mutual fund app will guide you through the process, which may involve an additional verification step by your bank.

Track and Manage Your SIPs

Once your SIP is set up, you can track and manage your investments through the mutual fund app. The app will provide real-time updates on the performance of your investments, allowing you to monitor your portfolio’s growth. You can also make changes to your SIPs, such as increasing the investment amount, pausing, or stopping the SIP, directly through the app.