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Mutual Funds - Different Ways To Set Up a Mutual Fund SIP

15 Jun 2020

A systematic investment plan allows investors to make regular investments in mutual fund schemes. Following are the prerequisites for starting an SIP.

  • Identify the SIP based on scheme type, its performance, portfolio and financial goals of the investor.
  • The investor must have his KYC completed and updated.
  • An investor can initiate an SIP either offline or online.


Offline mode
The investor must fill up a form that can be obtained from the fund house or downloaded from the fund website. An auto debit NACH mandate also must be filled. A copy of a cancelled cheque should be attached along with KYC documents – address and ID proof. These documents can be submitted at the investor service centre or branch office of the AMC.

Online mode
There are various ways to set up an SIP instruction using online facilities:

Fund house website: SIP can be set up using i-SIP facility from the fund house website by entering personal details, SIP and bank details. A URN is generated on submission. Now, the investor needs to log in to his bank account and add the mutual fund as a ‘biller’. The URN is needed to enable the SIP instruction.

Distributor portals: Mutual fund distributors such as corporate distributors or banks provide portals for online transactions of mutual funds. SIP can be easily set up using these portals. If bank mandate for auto debit is already registered with the portal then the same can be used for SIP.

MF transaction portals: There are various transaction portals for mutual funds such as those hosted by registrars of fund houses or the MFU (Mutual Fund Utilities) platforms. SIP can be initiated using these platforms by following a similar process.

Points to note

  • Investor can make a lump sum investment along with the SIP instruction to be able to start the investment forthwith.
  • Any change to the SIP instruction amounts to starting a fresh SIP and may require redoing the whole set up process.
Source: Economic Times BACK

To be added soon

Priyanshu B. Tanna

SEBI registered IFA

ARN119467 & EUIN E-183966

To be added soon

Bharat Tanna

SEBI registered IFA

ARN26176 & EUIN E-044509

To be added soon

Kundan B. Tanna

SEBI registered IFA

ARN294073 & EUIN E-553599

Risk factor

Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

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