2 Steps Checklist on Starting Best Mutual Funds for SIP

A mutual fund is a type of financial vehicle that pools moneyfrom various investors to invest in various securities like bonds, stocks, money market instruments and other assets. These funds are functioned by professional money managers with the aim of gaining capital profit or income.When you're thinking of mutual fund investment, you may probably opt for SIP or Systematic Investment Plan . It injects a disciplined savings approach. You invest a fixed sum of money in best mutual funds in SIP at regular intervals. The amount can be deposited daily, monthly, quarterly, or bi-annually compared to traditional options like fixed deposits or recurring deposits.SIP is the best way to gain returns from a mutual fund scheme. In the initial years, it gives you the flexibility to start small, and you can increase the amount in the future.
There are several benefits of investing in SIP's best mutual funds; these include compounding returns, less risk, and rupee cost averaging. Continuous investment facilitated by SIP assures wealth creation, provided you continue to stay invested for the long-term.Moreover, it is better to start investing in SIP at a young age because you can build wealth for education, retirement, or other long-term goals. It is easy to begin SIP once you know how to invest and how often you should do SIP.So, how do you start a SIP? Here is the two-step procedure for starting a SIP:

Many people who want to start mutual fund investment must know that it is necessary to do KYC. Once you're KYC-compliant, you can invest in a mutual fund scheme offered by any fund house. To start with KYC, you're required to arrange the following documents:

• PAN Card
• Address proof
• Passport-size photograph
• Cheque book to record bank details

The documents should be self-attested before you submit it for KYC compliance.If you're directly approaching a fund house or asset management company (AMC), you will be offered a KYC form. Once you download the form, fill it up and attach the necessary documents and submit it along with the form.To get started with KYC, you can also visit Registrar and Transfer Agents (RTAs). You need to download the KYC form from the websites and submit the form with the required documents.If you're applying for KYC via any agency, you need to provide personal details such as your name, date of birth, contact, and other basic information. Post form filling, you need to upload the soft copies of the PAN card, Address proof, and a passport-sized photo to support the application.Note that applying for KYC online through Aadhar services is discontinued. Moreover, there is a cap on the investment amount, which is around Rs.50,000 if you are applying for e-KYC via Aadhar services. One of the drawbacks of applying through Aadhar service is you need to submit the form physically. After form submission, you can carry out investments and other services online.Once the documentation is over, there is in-person verification that is conducted via video call. The objective is to confirm your identity on webcam. During the call, you need to show a PAN card and Address proof.

Here the focus should be on registering for the best mutual fund for SIP . You need to select a mutual fund scheme of your choice. How should you go about this?

• First, you should visit the official website of the fund house or asset management company that offers the scheme.
• Look for a link such as "Register Now" or "New Investor."
• Once you click on the link, you will be redirected to an application form. Fill the form with the correct details and contact information.
• Post this, choose a user ID and password for carrying our transactions online
• Select the SIP payment method and provide the bank details and decide an amount that will be debited monthly, quarterly, or bi-annually. The payment interval should be confirmed basis your financial capability.
• Once the registration is complete at your end, the fund house will send a confirmation.

At this stage, if you're wondering, what is the right SIP for your needs? It should depend on your expenditure, monthly income, financial goals, and the minimum or maximum amount you're ready to invest in best mutual funds for SIP. If you want to track the status of a scheme, you should remember the user id and folio number. This way, you can select any fund and know the status of the scheme. The procedure for tracking investment can vary for different fund houses.These are the two-step checklist to start with best mutual funds for SIP. Remember, the earlier you start SIP, the better it is for wealth creation.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.