How to Invest in SIP for Beginners in 7 Simple Steps

SIP is one of the top ways to start your investment journey with mutual funds. Mutual funds are a popular investment method today that offers long-term investment plans. 

With SIP, you can choose the installment amount and intervals. SIP can be a lower-risk strategy for mutual fund investment, where investors can effortlessly diversify the risk. Explore SIP and how you can invest in it here. 

SIP - An Overview

Most beginners don't have any answers to the question “What is SIP?” or “How to invest in SIP?” It is very important to know all the details about SIP before starting your mutual fund investments. SIP (Systematic Investment Plan) is a part of mutual fund investment that enables you to invest your money in installments that suit your convenience. These could be monthly or quarterly installments. 

For instance, if you have started your investment with Rs. 4000 in a mutual fund plan with SIP, then accordingly Rs. 4000 will be debited from your account every month and contributed to your mutual fund plan. 

Also Read: Difference Between SIP And Mutual Fund

How to Invest Money in SIP: Key Steps

Let's have a closer look at the step-by-step process here for how to invest in SIP online. 

Step 1: Set Your Financial Goals
Open the Rupeezy App for Mutual Fund via Appstore or GooglePlay and head to the "Goal Setting" section. Here, you can define your financial goals, whether they are long-term or short-term, and let the app recommend the best mutual fund plans based on your preferences.

Step 2: Prepare Your Documents
Make sure you have your ID proof, Aadhar card, PAN card, and address proof handy. You can easily upload these through the "Profile" section of the app. Need to verify your PAN-Aadhaar link? The Rupeezy app offers a direct guide to help you do just that.

Step 3: Complete KYC Online
Navigate to the "KYC Verification" section in the app. Here, you can complete your KYC by filling out the required information. The app makes this process quick and easy, ensuring you're ready to invest without delays.

Step 4: Browse & Choose a Mutual Fund Scheme
Go to the "Mutual Funds" tab and explore the curated list of funds. Use filters like risk level, investment horizon, and financial goals to narrow down your choices. Once you’ve found the right plan, tap on it for more details.

Optionally, you can use the sip calculator and step up sip calculator to predict your returns and gain more insights into your investments.

Step 5: Register for SIP
After selecting a mutual fund, click on "Start SIP." Enter your desired investment amount and choose the frequency of your investment (monthly, quarterly, etc.). Link your bank account directly through the app for automatic payments.

Step 6: Select Your SIP Date
Choose your preferred date for monthly SIP payments in the "Payment Setup" section. The app allows you to pick a date that works best with your monthly budgeting.

Step 7: Finalize and Submit Your SIP Application
Review all the details in the "Summary" page before submitting. Double-check your investment amount, bank details, and SIP date. When you're ready, simply hit "Submit." The process is entirely online, so you can complete your SIP setup within minutes.

Learn more with our latest guide “Best SIP for Long Term Investment”

Key Considerations Before Investing in SIP

1. Financial Objectives

You should take into account your financial goals before you invest in SIP. Identify the reason why you want to invest in SIP and what your financial objectives are. This might be related to your emergency fund, retirement plans, or saving for children's education.

2. Investment Tenure

One also needs to consider the tenure of an investment. Find out how long a period can lead to your financial goals. If you have any doubts about the tenure of the investment, seek specialist advice.

3. Consider Your Risk Appetite

Evaluate your risk capacity before investing in SIPs. Determine how much cash you can afford to lose each month without causing yourself stress. Your income level and financial objective must be considered to analyse your risk-taking capability.

4. Compute Your SIP Returns

Moreover, calculate your SIP return, which will help you know the likely returns from this investment. It will enable one to identify whether the amount one wanted to invest was appropriate for his/her financial objectives or goals. The calculator for calculating SIPs will be helpful.

Bottom Line

A systematic investment plan (SIP) is one of the most cost-effective investment strategies for achieving financial goals. You can invest in a mutual funds scheme with SIP in quarterly or yearly installments. It offers a convenient way of investing money in a mutual fund, leading to a secure future. Learn how to invest in SIP in India and consider all the tips to invest in SIP in completing your investment process for mutual funds without any problem.