What is SIP? (Quick Refresher)

SIP (Systematic Investment Plan) lets you invest a fixed amount regularly (monthly/weekly) in mutual funds. Instead of investing ₹60,000 once, you invest ₹5,000 every month for 12 months.

Why SIP is Perfect for Beginners:

✓ Start with as little as ₹500/month
✓ Auto-debit = disciplined investing
✓ Rupee cost averaging reduces risk
✓ No need to time the market

Step 1: Complete Your KYC (5 Minutes)

KYC (Know Your Customer) is mandatory for all mutual fund investments. Good news: It's a one-time process.

Documents Needed:

• PAN Card (mandatory)
• Aadhaar Card (for e-KYC)
• Bank account details
• Cancelled cheque or bank statement

How to Do e-KYC:

Visit any platform (Zerodha Coin, Groww, Kuvera)
Click "Start SIP" or "Sign Up"
Enter PAN and Aadhaar numbers
Complete Aadhaar OTP verification
Upload selfie (some platforms)
Done! KYC verified in 5 minutes

Pro Tip: Once KYC is done on one platform, it's valid across ALL mutual fund platforms in India. You won't need to do it again.

Step 2: Choose Your Platform

You can start SIP through platforms, banks, or directly with AMCs (Asset Management Companies). Here's what beginners should use:

Platform	Commission	Min SIP	Best For
Zerodha Coin	₹0 (Direct)	₹100	Serious investors
Groww	₹0 (Direct)	₹500	Beginners (easy UI)
Kuvera	₹0 (Direct)	₹100	Goal-based planning
Banks/Advisors	1-2% (Regular)	₹500	Avoid (high fees)

Important: Always choose "Direct Plans" not "Regular Plans". Direct plans have 1-1.5% lower expense ratios. Over 20 years, this difference can be ₹5-10 lakhs!

Step 3: Select Your Funds

This is where beginners get confused. Keep it simple:

For Your First SIP, Choose:

Option 1: Index Fund (Safest for Beginners)

Tracks Nifty 50 or Sensex. Low risk, matches market returns.

Example: Nippon India Index Fund - Nifty 50 Plan

Option 2: Flexicap Fund (Balanced)

Invests across large, mid, and small-cap stocks. Moderate risk.

Example: Parag Parikh Flexicap Fund

Golden Rule for Beginners:

Start with 1-2 funds maximum. Don't over-diversify. You can always add more funds after 6-12 months of experience.

Step 4: Set Your SIP Amount & Date

How Much to Invest?

Simple Formula:

SIP Amount = 10-15% of Monthly Income

• Income ₹30,000/month → Start with ₹3,000-5,000
• Income ₹50,000/month → Start with ₹5,000-7,500
• Income ₹1,00,000/month → Start with ₹10,000-15,000

Which Date to Choose?

Pick a date 2-3 days after your salary credit date. This ensures you have money in your account when auto-debit runs.

✅ Good Examples

• Salary on 1st → SIP on 5th
• Salary on 28th → SIP on 1st
• Salary on 30th → SIP on 3rd

❌ Avoid

• SIP date before salary
• End of month (rent, bills pending)
• Multiple SIPs on same date

Step 5: Set Up Auto-Debit

Auto-debit ensures you never miss a SIP. Here's how it works:

Platform sends mandate to your bank
You approve it via net banking (one-time)
Money auto-debits on SIP date every month
Units credited to your account in 2-3 days

Pro Tip: Set mandate limit 20% higher than SIP amount. If you want to increase SIP later, you won't need to re-authorize.

Step 6: Track Your Returns

Don't obsess over daily NAV changes. Check quarterly at most. Use our SIP calculator to track if you're on path to your goals.

📊 Calculate Your SIP Returns

Use our free SIP calculator to see how much you'll accumulate and track your progress monthly.

Try SIP Calculator →

✅ Goal planning • Step-up SIP • Investment tracker

Common Mistakes to Avoid

❌ Stopping SIP During Market Crash

This is when you get units cheap! Continue SIP during downturns - that's the whole point of rupee cost averaging.

❌ Investing Too Much Initially

Start small. It's better to invest ₹3K consistently than ₹10K for 3 months and then stop.

❌ Choosing Regular Plans

Always select Direct Plans. The 1-2% difference compounds to lakhs over 20 years.

❌ Over-Diversifying

Beginners don't need 10 funds. Start with 1-2. Add more only after understanding each fund's performance.

🎯 Key Takeaways

✓ Complete KYC first - it's a 5-minute one-time process
✓ Choose platforms like Zerodha Coin or Groww for zero-commission investing
✓ Start with 1-2 index or flexicap funds - keep it simple
✓ Invest 10-15% of monthly income, set SIP date after salary credit
✓ Never stop SIP during market crashes - that's when you benefit most

Ready to Start Your SIP Journey?

Calculate how much you'll accumulate with our free SIP calculator

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How to Start Your First SIP in India (2025 Complete Guide)

✅ What You'll Learn