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Systematic Investment Plan (SIP)

Systematic Investment Plan of a mutual fund is one of the best and smartest ways to make your income grow while achieving your financial targets in a simple and smooth manner. Popularly known as SIP, this type of investment has become popular in the past decade or so because it allows you to invest fixed amounts of money at regular intervals. That means you can invest on a monthly or quarterly basis continuously for a given period. If you have no experience of investing in the stock market or have reservations about stock investments, then SIP is a good way to get started.

Be it your long-term goals such as own home, children’s education, and retirement or short-term goals such as foreign vacation, mutual fund SIP in the best way to achieve them effectively. The returns from SIP mutual fund investment over a long-term horizon are much higher than the inflation rate. That coupled with the compounding effect make SIP a good investment option.

Invest in SIP online

If you think there’s hell of a lot of paperwork and other formalities for investing in SIP, then it’s time to rid yourself of all those inhibitions since you can definitely invest in SIP online. For online SIP investment, all you need is a 3-in-1 account with a registered stock broker and that’s it! You’re good to invest. Top stock broking houses offer you advisory services where they recommend the best SIP investment plans that you can invest in using their online trading portal.

How to start SIP investment in India?

You can invest in SIP in India by following the 3 simple steps mentioned below:

So, 1…2…3…You Have SIP!.

Step 1 – Keep all the required documents handy

All you need to start a mutual fund SIP is the following documents:

  • PAN card
  • Address proof (driving license, utility bill, bank statement)
  • A chequebook
  • A passport size photograph

You just need to scan these documents and keep soft copies ready. It will always be good and make your application quicker if you have your Aadhar Card soft copy handy as well. Once you have all these documents ready, you can process your SIP account online with ease.

Step 2 – Complete your KYC

You will need to complete your KYC requirement for investing in SIP in India. For investment purpose, mutual funds will require your details such as name, date of birth, address, and mobile number for completing your KYC.

Don’t worry! This is a simple formality where you can visit the website of your chosen fund house or even the broking house’s website and fill out all the required information, which may include submitting a soft copy of your PAN card and address proof document.

Once you have completed your KYC, simply visit the website of your chosen broking house and look for the start your SIP online or Register or New Investor links and click on them. Simply create your login ID and password by following the on-screen instructions and fill out all the required details. Next, simply click on the mutual fund SIP scheme of your choice and follow the on-screen details for investment.

Advantages of investing in a mutual fund SIP

  • Regular mechanism for investing
  • Helps in maintaining investment discipline since you have to invest regularly
  • Brings in the benefit of Rupee cost averaging
  • Since it is an investment for a long-term horizon, the power of compounding will be with you
  • You can invest in small amounts in SIP and make your money grow big

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Fees and other Financial Terms and Conditions for Investing in Stock Baskets

  • The Client agrees to pay the fees calculated in the manner and on the rates as provided in the Schedule I.
  • The Basket profits or returns would include any dividends, benefits received out of corporate actions.
  • All the costs, fees, charges as per schedule I and expenses of whatsoever nature incurred by us in connection with the acquisition, holding, sale and transfer, in respect of the dematerialised state charges of the Depository Participant, in respect of Securities shall be paid by the Client.
  • A new separate DP account is required for all investors for the basket investments.
  • For new and existing clients, the Demat account will be used only for equity basket and Investor is free to open separate Demat account for self managed investment.
  • During the course of investment, we will invest as close as possible to the basket amount. Some small surplus to be left due to rounding off that amount will be managed /invest/return to the investor as suitable.
  • The stocks in the basket will be as per the discretion of the ACMIIL. These stocks would be reviewed from time to time and the rebalancing, (if any), of the stocks in the basket would be at the discretion of ACMIIL.
  • You are free to exit basket wise or exit from all basket at any point of time. You are not allowed to selectively exit from any stock or add any stock to the basket.
  • In case of a bank mandate, we will need 20% more mandate of the basket amount as the stock price will fluctuate time to time. The amount taken from bank would be actual value of Basket.
  • The Client agrees that in the event of a dispute, the Claims, if any, by the Client cannot exceed the fees paid by the Client for the year for advisory services in Rupee terms.
  • The client agrees that in case of any dispute, the claim and/or disputes will be referred to arbitration as per the Rules, Bye-laws and Regulations of the Stock Exchange where the trade is executed and the circulars/notices issued there under as may be in force from time to time.
  • As a SEBI registered stock broker, we are permitted to act as an adviser. This product is part of our advisory activity.

Schedule I

Fees Structure
Nature of FeesFees
Basket FeesINR 300 per basket + GST (Charged upfront)
Advisory Fees (Second year onwards)2% p.a+ GST (Charged upfront on Basket Value)
Approx Transaction Charges0.13%
Note: In Basket fees and Management Fees, GST will be recovered at the applicable rate.
Transaction charges includes Brokerage, STT, Stock Exchange charges, Stamp duty, SEBI Charges & GST

Fees Structure Example:

Suppose Client A has bought 1 basket for 36 months so he will pay INR 300 per basket as Basket fees for 36 months and from 13th month onwards he will pay Advisory fees for 1st basket as one year ends for the basket. So, after completion of one year the client A has to pay the Basket fees (13th month fresh basket) as well advisory fees (1st basket upfront Advisory fees for second year).

Transaction Charges Includes
HeadsRate
STT (Central Govt)0.1% on Transaction Value
Transaction Charges (Stock Exchange)0.0034% on Transaction Value
Stamp Duty & SEBI Charges0.011% on Transaction Value
GST18% on Transaction Charges.
  • I have understood that Investment in securities market is subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future performance and future results. The recommendations made by ACMIIL could be those that are based on its own research or on the advice of a SEBI registered Investment Adviser.
  • I have understood the equity basket fees terms and other financial conditions and the clarifications required by me. I understand that the investment in Equity basket is subject to risk associated with equity investments. I have understood the investment process and other aspects of the product.
  • I hereby agree to participate.

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