Different Ways to Invest in an SIP Mutual Fund

Different Ways to Invest in an SIP Mutual Fund

Do you want to make your money work for you? Then, investing in mutual funds is one of the best financial decisions you can make. However, haste is waste, right? There are a few factors you need to keep in mind before you jump into the investment wagon – your financial objectives, your risk tolerance, your investment strategy, the prevailing market conditions, the right asset classes, and more.

Settled with the rest and wondering how to invest in SIP? Well, here are the different ways to do so.

The traditional way

One of the first and the oldest ways to invest in mutual funds India is to manually fill in a form, either obtained from a fund house/Asset Management Company or downloaded from the fund website. Besides the form, the investor must also fill in a debit NACH mandate. Then, along with a copy of a cancelled cheque, the required KYC documents must be submitted – either at a branch office of the Asset Management Company or an investor service centre.

The digital way

With regards to investing in mutual funds online, the following avenues are open for investors –

  • The fund house website

Using the i-SIP facility of the fund house website, an investor can invest – you need to provide personal details, Systematic Investment Plan details, and bank details for it. A URN, short for a Unique Registration Number, is generated after which you need to log into your bank account and add the SIP as a “biller.” The URN will be needed to enable this.

  • Distributor portals

Different MF distributors such as corporate distributors and banks offer portals for online transactions of Systematic Investment Plans. You can easily start investing using this way if bank mandate for auto debit has already been registered with the portal as the same can be used for Systematic Investment Plan.

  • MF transaction portals

The process of investing in mutual funds using this method is similar to the previous one; however, here, you need to carry out your transactions from one of the many transaction portals for MFs set up by registrars of fund houses or Mutual Fund Utilities (MFU) platforms.

Which one is better?

When it comes down to weighing the two options on a scale, most present-day investors, even first-time, choose to take the online route as it is easy, quick, and hassle-free. Plus, when you have a trusted and experienced portfolio manager helping you make the right choice; all the more better.

You can now go through your SIP options at the tip of your fingers. Yes, that little smartphone tucked away in your pocket can offer you with investment apps like Tata Capital Moneyfy app that let you compare different funds and choose the ideal one to invest in based on your investment strategy, risk appetite, and other key requirements. Investing in MFs is not just a profitable venture, but it is an adventure altogether, so make the most of it today.


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