The process to start a systematic investment plan?

New financial year has started and investors are exploring new avenues for investment. If you choice are mutual funds then SIP has to be the obvious choice. Many investors who want to invest in SIP modelled on an equity mutual fund scheme hate the paper work involved. No need to lose your sleep over paper work. Put your leg up switch on the computer as you can start your SIP from your own office or home.

Before starting a systematic investment plan you need to be aware about KYC norms. This stands for know your customer. To invest in mutual funds they are a must. An identify proof, coupled with an address proof and a photograph are the pre requisites. Through an IPV you need to confirm your physical verification at the same time. These series of steps can also be completed in an electronic manner by EKyc. Some companies even have these facilities provided on their website. Just you need to click on the link Ekyc and follow the series of steps.

Alternatively you can pay a visit to online CMS KRA which is registered agency for KYC. It works out to be a one time and centralized procedure. No need to fulfil it in a separate manner with each and every fund house where you are planning to invest. CAMS are not the transfer and register agent for each and every mutual fund, some of the mutual funds are being dealt by Karvy. Just check out the services of the fund of your choice.

For each fund house the process of KYC differs considerably. But the structure virtually remains the same.

Basic information

In an online form the first basic step would require you to furnish all personal information. This would include your name, mobile number, address, date of birth etc.

Upload documents

In the second step you need to upload a scanned copy of your Permanent account Number (PAN) followed with an address proof.

Video call

To complete the process of in verification, the fund house might ask you to select a suitable time. In doing so you might have to comply with your physical existence with the help of a webcam. Your original PAN card and address proof needs to be beside you as you might be asked to show them during the video call.

EKYC based on Aadhar

If you have an Aadhar this would simplify the above procedure. Just you need to input your Aadhar details and this has to be authenticated by an OTP. Then the UIDAI with incorporate all the details provided in the Aadhar. In this case you might not require verification via a video call.

Though the UIDAI has your biometric information you might not be entitled to transactions above Rs 50,000 if you have not gone on to submit your PAN card details. On providing your PAN card details the limit can be enhanced.

This pretty much explains the process of on how to start SIP