Step-by-Step Guide: How Beginners Can Invest in SIP (Systematic Investment Plan)

Investing in mutual funds through a Systematic Investment Plan (SIP) is one of the best ways for beginners to enter the world of wealth creation. SIP allows you to invest small amounts regularly, benefiting from rupee cost averaging and compounding returns.

If you’re wondering how to invest in SIP for beginners, this comprehensive guide will walk you through the entire process—from understanding SIP to how to do SIP investment online without a broker.

Table of Contents

1. What is SIP?
2. Why Should Beginners Invest in SIP?
3. How to Invest in SIP for Beginners – Step-by-Step Process

• Step 1: Set Your Financial Goals
• Step 2: Choose the Right Mutual Fund
• Step 3: Complete KYC (Know Your Customer)
• Step 4: Open a Mutual Fund Account
• Step 5: Decide SIP Amount & Frequency
• Step 6: Start Your SIP Online

1. How to Do SIP Investment Online (Without a Broker)
2. How to Purchase SIP Online – Popular Platforms
3. How to Apply SIP Online – Direct vs. Regular Plans
4. Common Mistakes to Avoid in SIP Investing
5. FAQs on How to Buy SIP Online
6. Conclusion

1. What is SIP?

SIP (Systematic Investment Plan) is a method of investing in mutual funds where you contribute a fixed amount at regular intervals (weekly, monthly, quarterly). Instead of investing a lump sum, SIP helps you build wealth gradually while minimizing market risks.

Key Features of SIP:

✔ Small, regular investments (as low as ₹500/month)
✔ Disciplined approach to investing
✔ Reduces impact of market volatility (Rupee Cost Averaging)
✔ Power of compounding over the long term

2. Why Should Beginners Invest in SIP?

If you’re new to investing, here’s why SIP is the best choice:

✅ Affordable – Start with as little as ₹500/month.
✅ No Need for Market Timing – SIP automatically buys more units when prices are low and fewer when prices are high.
✅ Flexibility – Increase, decrease, pause, or stop SIP anytime.
✅ Long-Term Wealth Creation – Consistent investments grow significantly over time.

3. How to Invest in SIP for Beginners – Step-by-Step Process

Step 1: Set Your Financial Goals

Before learning how to do SIP, define your goals:

• Short-term (1-3 years) – Vacation, emergency fund
• Medium-term (3-5 years) – Buying a car, down payment for a house
• Long-term (5+ years) – Retirement, child’s education

Step 2: Choose the Right Mutual Fund

• Equity SIPs – Best for long-term growth (higher risk).
• Debt SIPs – Lower risk, stable returns.
• Hybrid SIPs – Balanced mix of equity and debt.

Use tools like CRISIL rating, past performance, and expense ratio to select funds.

Step 3: Complete KYC (Know Your Customer)

To purchase SIP online, you need KYC compliance. Submit:

• PAN card
• Aadhaar card
• Bank proof

You can complete e-KYC online via:

• Mutual fund websites
• KYC registration agencies (KRAs) like CAMS, Karvy

Step 4: Open a Mutual Fund Account

You can invest directly through:

• AMC (Asset Management Company) websites
• Online platforms (Groww, Kuvera, ET Money, Coin by Zerodha)
• Bank portals (HDFC, ICICI, SBI)

Step 5: Decide SIP Amount & Frequency

• Minimum SIP: ₹500/month (varies per fund)
• Frequency: Monthly, weekly, quarterly

Step 6: Start Your SIP Online

• Log in to your chosen platform.
• Select the fund and SIP option.
• Enter amount, date, and bank details.
• Submit & authorize via net banking/UPI.

Congratulations! Your SIP is now active.

4. How to Do SIP Investment Online (Without a Broker)

Many beginners prefer investing in SIP online without a broker to save on commissions. Here’s how:

1. Direct Plan vs. Regular Plan

• Direct Plan – Lower expense ratio (no broker commission).
• Regular Plan – Higher fees (includes distributor commission).

1. Best Platforms to Buy SIP Online:

• Groww, Kuvera, ET Money (Zero commission)
• Coin by Zerodha (Direct mutual funds)
• AMC Websites (Franklin, Mirae, Axis, etc.)

1. Process:

• Register & complete KYC.
• Choose a direct plan.
• Set up auto-debit from your bank.

5. How to Purchase SIP Online – Popular Platforms

6. How to Apply SIP Online – Direct vs. Regular Plans

For beginners, direct plans are better for higher returns.

f you want to know about offline SIP, then click here

7. Common Mistakes to Avoid in SIP Investing

❌ Stopping SIP During Market Dips – Stay invested for long-term gains.
❌ Ignoring Financial Goals – Align SIP with objectives.
❌ Choosing High-Expense Ratio Funds – Reduces overall returns.
❌ Not Reviewing Portfolio – Rebalance annually.

8. FAQs on How to Buy SIP Online

Q1. How can I start SIP online?

• Register on a platform (Groww, Kuvera), complete KYC, select a fund, and start SIP.

Q2. Can I invest in SIP without a broker?

• Yes! Use direct plans via AMC websites or platforms like Kuvera.

Q3. What is the minimum SIP amount?

• Usually ₹500/month, but some funds allow lower amounts.

Q4. How to stop or modify SIP?

• Log in to your mutual fund account and pause/change SIP settings.

Conclusion

Investing in SIP is the easiest and most effective way for beginners to enter the stock market. Now that you know how to do SIP investment online, start early, stay consistent, and watch your wealth grow over time.

🚀 Ready to begin? Choose a platform, pick a fund, and start your SIP journey today!