How To Start SIP Investments: Step-by-Step Guide

A SIP is one of the best ways to invest in mutual funds. There are many ways to invest in mutual fund SIPs. But the easiest way is to invest using an app like Cube Wealth. Let’s see how by comparing the offline and online mode of SIP investments.   

How To Start A Mutual Fund SIP Investment?

There are two ways to invest in mutual funds via SIP.

1. Steps To Invest Offline

The documents you'll need:

• PAN 
• Address proof (Aadhar card, driving license, passport, etc.)
• Passport size photo
• Cheque book
  

The process you’ll have to go through:

Step 1. Go to a fund house/AMC or bank

Step 2. Select a mutual fund

Step 3. Collect and fill the application form

Step 4. Complete the KYC process (using the docs mentioned above) 

Step 5. Submit the application form 

Step 6. Pay the amount you want to invest 

Step 7. Collect the receipt (includes payment confirmation, nav & units details)

2. Steps To Invest Online

The offline method may seem cumbersome to investors. Cube simplifies the mutual fund SIP investment journey. Here is how the process works on the Cube Wealth app:

Step 1. Download the Cube Wealth app

Step 2. Complete your KYC 

Step 3. Enter your risk appetite

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Step 4. Enter your investment amount

Step 5. Tap on confirm

All of this with a few clicks from the comforts of your home.

Why Cube Is The Best App For Mutual Fund SIPs

Before you start a SIP, you need to identify the mutual fund you want to invest in. There are more than a thousand different mutual fund options available. So it may be difficult to choose the right fund. 

If you’re investing with Cube, however, this won’t be a problem. Our mutual fund advisor, Wealth First, curates a list of hand-picked funds for Cube users each month. 

But that still leaves you with a handful of funds to choose from. So how do you know which one is right for you? By speaking to a wealth coach!

Our wealth coaches recommend funds based on your goals and risk level.

The Cube Wealth app also gives you access to SIP options like:

1. SuperSIP: Allows you to modify or even skip SIP payments
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2. QuickSIP: Start a mutual fund SIP based on your preferences

Get Cube app for free

FAQs

1. What Is The Minimum SIP Amount?

Ans. The minimum SIP amount on the Cube Wealth app is ₹1000. 

2. Is It Good To Invest Money In SIP?

Ans. Yes. SIPs are one of the best ways to invest in mutual funds. But speak to a wealth coach to know more about the right SIP for you. 

3. What Are The Pros & Cons Of A Systematic Investment Plan (SIP)?

Ans. A SIP is one of the best ways to invest in mutual funds. It helps you invest across market cycles but carries market-related risks.

Pros of Systematic Investment Plans (SIPs)

• Convenience
• Flexibility
• Easy on the pocket‍

Cons of Systematic Investment Plans (SIPs)

• Market-based risks
• Liquidity risks
• Fund-specific risk
  

4. How To Invest Money In SIP?

Ans. There are two ways to invest money in SIPs: Offline and Online. However, the best way to invest in mutual fund SIPs is through the Cube Wealth app.

Watch this in-app guide on Quick SIPs for MF

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5. What Are SIP Mutual Funds And How Do They Work?

Ans. A Systematic Investment Plan or SIP allows you to invest in mutual funds in small amounts over fixed intervals of time. It is not an investment itself but a way to invest in mutual funds.

6. What Are The Benefits Of SIP?

Ans. SIPs are beneficial for the long term since you do not have to worry about short term market fluctuations or timing the market. Other benefits include low minimum investment amount, risk-based investment options, and flexibility. A SIP also helps you become a disciplined investor because you’ll be paying a monthly, quarterly, or yearly SIP amount.