How to Invest in a SIP?

Updated on September 14, 2025 , 34950 views

Systematic Investment plan or SIP refers to an investment mode where people invest in Mutual Funds in small amounts at regular intervals. SIP is one of the beauties of Mutual Fund which allows individuals to invest as per their convenience in Mutual Funds. Also, referred as a goal-based investment, SIP helps people to accomplish their bigger dreams through small investment amounts. SIP is generally referred to in the context of Equity Funds due to longer investment tenure. So, let us understand how to invest in a SIP Mutual Fund, the concept of mutual fund calculator, Benefits of SIP, the concept of SIP online and some of the prominent AMCs such as ICICI Prudential Mutual Fund, SBI Mutual Fund, and much more Offering SIP option.

How to Start a SIP Mutual Fund?

The process of starting a SIP is easier. It can be done either through the online or offline process. People who feel convenient in the paperless mode of investment can choose the online mode of starting a SIP. On the contrary, people not convenient with online mode of investment can choose to invest through offline mode. For starting a SIP either through online or offline technique, people need to have a registered mobile number, PAN number, and Aadhaar number. So, let us understand the process starting a SIP through both online and offline techniques.

Guide to Start SIP Online

People can invest in SIP through online mode in a hassle-free and paperless manner. People can start a SIP online either through the Mutual Fund distributor or through the AMC. However, it is always preferred to invest through distributors as people can find a number of schemes of various AMCs under one umbrella. In addition, these distributors do not charge any fees from the clients and provide an in-depth analysis of various schemes. In addition, many of these distributors also help customers to get their KYC done through the eKYC procedure. The steps for starting a SIP online through a Mutual Fund Distributor is as follows.

Step1: Complete your registration process by logging on to the distributor’s website.
Step2: Select the Schemes in which you are planning to start the SIP.
Step3: Enter the SIP details such as tenure of the SIP, amount to be invested in the SIP, frequency of the SIP and so on.
Step4: Make payment either through net banking or NEFT/RTGS mode.
Step5: Get confirmation of payment received and start the SIP.

Thus, from the above-mentioned steps, it can be said that it is easy to start a SIP online. Now, let us glance through the steps about how to invest in a SIP offline.

How to Start Offline SIP Mutual Fund?

The process of SIP through offline process though is easy however, it requires a lot of paperwork. To start Investing in Mutual Funds through offline mode, people can visit any fund house’s office or through any broker. So, let us understand the steps for starting a SIP offline.

Step1: Select a scheme that suits your requirements and investment objectives and visit the respective fund house’s office.
Step2: Fill up the application form. Here, you need to write the correct details such as your name, address, the scheme in which you are planning to invest, the SIP amount, tenure of SIP, and much more.
Step3: Complete the KYC formalities by filling up the KYC related form.
Step4: Submit the forms along with the required documents and pay the money.
Step5: Get confirmation for the Receipt of payment and get units of the schemes.

Thus, from the given steps, we can say that the process of investing Mutual Funds through the offline process is easy. However, it requires a considerable amount of paperwork.

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Mutual Fund Calculator or SIP Calculator

Mutual Fund calculator is also known as sip calculator. People use this calculator to assess their amounts to attain their objectives to be attained in the future. The various objectives that people plan to attain through SIP calculator include purchasing a house, purchasing a vehicle, planning for higher education, and much more. The Mutual Fund calculator also shows how the SIP investment grows over a period of time in a virtual environment.

Benefits of Investing in SIP

SIP mode of investment has numerous advantages which are mentioned as follows:

Rupee Cost Averaging

It is one of the crucial benefits of SIP. Through SIP mode of investment, people invest in Mutual Fund schemes at different price points. Hence, when the Market is showing an uptrend; people get less number of units. On the contrary, when the market experiences a downtrend people get more number of units of the scheme. As a consequence, the price of Mutual Fund units gets averaged out over a period of time. As a consequence, people might end up getting more units allotted instead which is not possible through lump sum mode of investing.

Power of Compounding

This is the second advantage of SIP. SIP is applicable to compounding where the interest amount is calculated on the principal amount plus the accrued interest till date. As this process continues every time; they are compounded that increases the initially invested amount.

Disciplined Savings Habit

This is the third benefit of SIP where SIP creates a disciplined savings habit among individuals. This is because; in SIP people need to invest in Mutual Funds at regular intervals.

Affordability

Affordability is also one of the benefits of SIP. This is because; people can determine the investment amount as per their preference. There are many of the SIP schemes that start with an investment amount of INR 500.

Top 10 Best Performing Mutual Funds for SIP

Fund	NAV	Net Assets (Cr)	Min SIP Investment	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	5 YR (%)	2024 (%)
DSP US Flexible Equity Fund Growth	₹70.9485 ↑ 0.25	₹989	500	16.8	30.7	30	21.5	18.1	17.8
Franklin Asian Equity Fund Growth	₹33.2825	₹270	500	10.8	18.1	18	11.5	4.3	14.4
Invesco India Growth Opportunities Fund Growth	₹103.01 ↑ 0.66	₹8,007	100	4.5	26.5	6.3	25.2	23.7
ICICI Prudential Banking and Financial Services Fund Growth	₹133.64 ↑ 0.50	₹9,930	100	0.5	16.5	6.1	14.9	20.9	11.6
Aditya Birla Sun Life Banking And Financial Services Fund Growth	₹60.66 ↑ 0.29	₹3,497	1,000	-0.3	17	4.2	14.7	21
Motilal Oswal Multicap 35 Fund Growth	₹63.7252 ↑ 0.83	₹13,727	500	5.2	18.3	3	22.6	19.7
Kotak Standard Multicap Fund Growth	₹85.64	₹53,293	500	0.8	17.4	1.7	16.7	19.1
Mirae Asset India Equity Fund Growth	₹114.549 ↑ 0.66	₹39,975	1,000	2.9	15.6	0.2	13.4	16.7
Axis Focused 25 Fund Growth	₹56.09 ↑ 0.40	₹12,585	500	2.2	17	-1.3	10.5	13.3	14.8
Kotak Equity Opportunities Fund Growth	₹344.824 ↑ 2.32	₹28,084	1,000	2.2	17.7	-1.4	18.7	21.8
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 15 Sep 25

Research Highlights & Commentary of 10 Funds showcased

Commentary	DSP US Flexible Equity Fund	Franklin Asian Equity Fund	Invesco India Growth Opportunities Fund	ICICI Prudential Banking and Financial Services Fund	Aditya Birla Sun Life Banking And Financial Services Fund	Motilal Oswal Multicap 35 Fund	Kotak Standard Multicap Fund	Mirae Asset India Equity Fund	Axis Focused 25 Fund	Kotak Equity Opportunities Fund
Point 1	Bottom quartile AUM (₹989 Cr).	Bottom quartile AUM (₹270 Cr).	Lower mid AUM (₹8,007 Cr).	Lower mid AUM (₹9,930 Cr).	Bottom quartile AUM (₹3,497 Cr).	Upper mid AUM (₹13,727 Cr).	Highest AUM (₹53,293 Cr).	Top quartile AUM (₹39,975 Cr).	Upper mid AUM (₹12,585 Cr).	Upper mid AUM (₹28,084 Cr).
Point 2	Established history (13+ yrs).	Established history (17+ yrs).	Established history (18+ yrs).	Established history (17+ yrs).	Established history (11+ yrs).	Established history (11+ yrs).	Established history (16+ yrs).	Established history (17+ yrs).	Established history (13+ yrs).	Oldest track record among peers (21 yrs).
Point 3	Top rated.	Rating: 5★ (top quartile).	Rating: 5★ (upper mid).	Rating: 5★ (upper mid).	Rating: 5★ (upper mid).	Rating: 5★ (lower mid).	Rating: 5★ (lower mid).	Rating: 5★ (bottom quartile).	Rating: 5★ (bottom quartile).	Rating: 5★ (bottom quartile).
Point 4	Risk profile: High.	Risk profile: High.	Risk profile: Moderately High.	Risk profile: High.	Risk profile: High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.	Risk profile: Moderately High.
Point 5	5Y return: 18.06% (lower mid).	5Y return: 4.26% (bottom quartile).	5Y return: 23.72% (top quartile).	5Y return: 20.86% (upper mid).	5Y return: 21.04% (upper mid).	5Y return: 19.72% (upper mid).	5Y return: 19.08% (lower mid).	5Y return: 16.66% (bottom quartile).	5Y return: 13.31% (bottom quartile).	5Y return: 21.85% (top quartile).
Point 6	3Y return: 21.49% (upper mid).	3Y return: 11.46% (bottom quartile).	3Y return: 25.21% (top quartile).	3Y return: 14.91% (lower mid).	3Y return: 14.70% (lower mid).	3Y return: 22.56% (top quartile).	3Y return: 16.70% (upper mid).	3Y return: 13.37% (bottom quartile).	3Y return: 10.47% (bottom quartile).	3Y return: 18.67% (upper mid).
Point 7	1Y return: 30.01% (top quartile).	1Y return: 17.95% (top quartile).	1Y return: 6.27% (upper mid).	1Y return: 6.06% (upper mid).	1Y return: 4.17% (upper mid).	1Y return: 3.01% (lower mid).	1Y return: 1.74% (lower mid).	1Y return: 0.22% (bottom quartile).	1Y return: -1.27% (bottom quartile).	1Y return: -1.43% (bottom quartile).
Point 8	Alpha: -1.71 (bottom quartile).	Alpha: 0.00 (lower mid).	Alpha: 12.86 (top quartile).	Alpha: -3.35 (bottom quartile).	Alpha: -8.11 (bottom quartile).	Alpha: 10.18 (top quartile).	Alpha: 2.01 (upper mid).	Alpha: 1.71 (upper mid).	Alpha: 3.17 (upper mid).	Alpha: -0.14 (lower mid).
Point 9	Sharpe: 0.78 (top quartile).	Sharpe: 0.57 (top quartile).	Sharpe: 0.28 (upper mid).	Sharpe: 0.37 (upper mid).	Sharpe: 0.09 (lower mid).	Sharpe: 0.11 (upper mid).	Sharpe: -0.31 (bottom quartile).	Sharpe: -0.35 (bottom quartile).	Sharpe: -0.23 (lower mid).	Sharpe: -0.40 (bottom quartile).
Point 10	Information ratio: -0.40 (bottom quartile).	Information ratio: 0.00 (lower mid).	Information ratio: 1.21 (top quartile).	Information ratio: 0.18 (upper mid).	Information ratio: 0.19 (upper mid).	Information ratio: 0.80 (top quartile).	Information ratio: 0.24 (upper mid).	Information ratio: -0.36 (bottom quartile).	Information ratio: -1.12 (bottom quartile).	Information ratio: 0.06 (lower mid).

DSP US Flexible Equity Fund

Bottom quartile AUM (₹989 Cr).
Established history (13+ yrs).
Top rated.
Risk profile: High.
5Y return: 18.06% (lower mid).
3Y return: 21.49% (upper mid).
1Y return: 30.01% (top quartile).
Alpha: -1.71 (bottom quartile).
Sharpe: 0.78 (top quartile).
Information ratio: -0.40 (bottom quartile).

Franklin Asian Equity Fund

Bottom quartile AUM (₹270 Cr).
Established history (17+ yrs).
Rating: 5★ (top quartile).
Risk profile: High.
5Y return: 4.26% (bottom quartile).
3Y return: 11.46% (bottom quartile).
1Y return: 17.95% (top quartile).
Alpha: 0.00 (lower mid).
Sharpe: 0.57 (top quartile).
Information ratio: 0.00 (lower mid).

Invesco India Growth Opportunities Fund

Lower mid AUM (₹8,007 Cr).
Established history (18+ yrs).
Rating: 5★ (upper mid).
Risk profile: Moderately High.
5Y return: 23.72% (top quartile).
3Y return: 25.21% (top quartile).
1Y return: 6.27% (upper mid).
Alpha: 12.86 (top quartile).
Sharpe: 0.28 (upper mid).
Information ratio: 1.21 (top quartile).

ICICI Prudential Banking and Financial Services Fund

Lower mid AUM (₹9,930 Cr).
Established history (17+ yrs).
Rating: 5★ (upper mid).
Risk profile: High.
5Y return: 20.86% (upper mid).
3Y return: 14.91% (lower mid).
1Y return: 6.06% (upper mid).
Alpha: -3.35 (bottom quartile).
Sharpe: 0.37 (upper mid).
Information ratio: 0.18 (upper mid).

Aditya Birla Sun Life Banking And Financial Services Fund

Bottom quartile AUM (₹3,497 Cr).
Established history (11+ yrs).
Rating: 5★ (upper mid).
Risk profile: High.
5Y return: 21.04% (upper mid).
3Y return: 14.70% (lower mid).
1Y return: 4.17% (upper mid).
Alpha: -8.11 (bottom quartile).
Sharpe: 0.09 (lower mid).
Information ratio: 0.19 (upper mid).

Motilal Oswal Multicap 35 Fund

Upper mid AUM (₹13,727 Cr).
Established history (11+ yrs).
Rating: 5★ (lower mid).
Risk profile: Moderately High.
5Y return: 19.72% (upper mid).
3Y return: 22.56% (top quartile).
1Y return: 3.01% (lower mid).
Alpha: 10.18 (top quartile).
Sharpe: 0.11 (upper mid).
Information ratio: 0.80 (top quartile).

Kotak Standard Multicap Fund

Highest AUM (₹53,293 Cr).
Established history (16+ yrs).
Rating: 5★ (lower mid).
Risk profile: Moderately High.
5Y return: 19.08% (lower mid).
3Y return: 16.70% (upper mid).
1Y return: 1.74% (lower mid).
Alpha: 2.01 (upper mid).
Sharpe: -0.31 (bottom quartile).
Information ratio: 0.24 (upper mid).

Mirae Asset India Equity Fund

Top quartile AUM (₹39,975 Cr).
Established history (17+ yrs).
Rating: 5★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 16.66% (bottom quartile).
3Y return: 13.37% (bottom quartile).
1Y return: 0.22% (bottom quartile).
Alpha: 1.71 (upper mid).
Sharpe: -0.35 (bottom quartile).
Information ratio: -0.36 (bottom quartile).

Axis Focused 25 Fund

Upper mid AUM (₹12,585 Cr).
Established history (13+ yrs).
Rating: 5★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 13.31% (bottom quartile).
3Y return: 10.47% (bottom quartile).
1Y return: -1.27% (bottom quartile).
Alpha: 3.17 (upper mid).
Sharpe: -0.23 (lower mid).
Information ratio: -1.12 (bottom quartile).

Kotak Equity Opportunities Fund

Upper mid AUM (₹28,084 Cr).
Oldest track record among peers (21 yrs).
Rating: 5★ (bottom quartile).
Risk profile: Moderately High.
5Y return: 21.85% (top quartile).
3Y return: 18.67% (upper mid).
1Y return: -1.43% (bottom quartile).
Alpha: -0.14 (lower mid).
Sharpe: -0.40 (bottom quartile).
Information ratio: 0.06 (lower mid).

Prominent AMCs offering SIP Mutual Fund

Almost all the AMCs offer SIP mode of investment in many of their Mutual Fund schemes. Some such prominent AMCs who offer SIP mode of investment are as follows.

SBI SIP

SBI Mutual Fund is one of the prominent AMCs in India. SBI offers SIP mode of investment in many of the schemes. The minimum investment amount for SIP starts with INR 500 in various schemes. In addition, SBI also offers various frequencies in SIP such as monthly and quarterly. Individuals can transact in SBI Mutual Funds in both online as well as offline mode.

HDFC SIP

HDFC Mutual Fund is also one of the well reputed Mutual Fund companies in India. HDFC offers SIP mode of investment in a number of schemes with the minimum SIP amount starting from INR 500. HDFC Mutual Fund offers both online Likewise SBI, HDFC also has varying frequencies in SIP.

ICICI SIP

ICICI Prudential Mutual Fund is a well-established fund house in India. In ICICI, the minimum SIP amount in many of its schemes starts with INR 1,000. ICICI Prudential Mutual Fund offers SIP mode of investments in many schemes having varying frequencies.

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Conclusion

To conclude, we can say that it is easy to invest in a SIP. However, it is always advised that people understand a scheme’s modalities completely. Moreover, they can also consider the advice of a financial advisor if required, to ensure that they can attain their objectives on time.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.