How to Start a SIP in India: Step-by-Step Guide for Beginners

Starting a SIP takes less time than most people expect, usually under an hour once your documents are ready. Here is the whole process.

What are the steps to start a SIP?

1. Define your goal

Decide what the money is for and when you need it, because that decides which fund suits you. Work out the monthly amount your goal needs.

2. Complete your KYC

You need a PAN card, Aadhaar, a bank account and a mobile number linked to Aadhaar. KYC is done once and then works across mutual funds.

3. Choose a fund

Match the fund to your timeline. See our guide on how to choose mutual funds. One or two funds are plenty to begin with.

4. Set your amount and date

Choose an amount you can keep up in a bad month, and a date just after salary day. Start small if you need to, and raise it each year.

5. Set up the auto-debit

Register an e-mandate with your bank so that each instalment happens automatically. You can pause or stop a SIP later without penalty, though ELSS instalments stay locked for three years.

How much can a small SIP grow to?

These figures assume 12% a year, which is not guaranteed. Try your own with the SIP Calculator.

Should I do this online or with help?

You can start online on your own, or work with a distributor who helps with KYC, fund choice and reviews. If you would like help, you can start a SIP with Vikas.