Ask ET Mutual Funds: What is the procedure to start an SIP?

I am interested in starting an SIP. This is my first SIP. What's the procedure to invest through an SIP. Can you please give me the details? I want to invest Rs 5,000 every month. --Jeetan Gurung

Jayant Vidwans, SEBI-Registered Investment Advisor, responds:

As a first-time investor, you must complete the KYC procedure with a mutual fund organisation. If you want to invest directly, you have to do “in person verification or web verification” with the AMC. You must produce a copy of your PAN card, address proof and photograph, or approach some mutual fund distributor who can help you to do the paper work.


Secondly, since you are investing for the first time, select largecap funds. Based on the current performance and rating, SBI Bluechip Fund, Birla Sun Life Frontline Equity fund and Mirae Asset India Opportunities Fund are good options. Invest through SIPs for a longer period, say, 10-15 years. In the long run, mutual funds will give you good returns.

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