How to Start SIP Online in India: Step-by-Step Process (2026)

Introduction: No More Bank Queues for Shankaran

Shankaran Pillai remembers opening his bank account in 1995.

It took three trips to the branch. He had to sign 20 forms. He had to bring two witnesses. The manager made him wait for an hour. He hated it.

Today, Shankaran wants to start a SIP, but he is procrastinating. Why? Because he thinks he has to go through that torture again.

Shankaran, listen to me: It is 2026. You do not need a pen. You do not need to visit a branch. You do not even need to wear pants (if you are doing this from your sofa).

All you need is your smartphone. Let’s get your money working for you in the next 10 minutes.

Checklist: Documents You Need Before You Start

Before you download any app, keep these 3 things ready. If you have these, the process is instant.

1. PAN Card Number: Mandatory for all financial investments in India.
2. Aadhaar Card (Linked to Mobile): This is critical for “e-KYC” (OTP verification).
3. Bank Details: Account Number and IFSC Code (or your UPI ID).

Note: You do not need a Cheque Book or physical photos anymore.

Step 1: Choose Your Platform (Where to Buy?)

You have three main ways to buy Mutual Funds online. Let’s pick the best one for Shankaran.

Option A: The “Aggregator” Apps (Recommended)

• Examples: Zerodha Coin, Groww, Angel One, Upstox.
• Why: They are user-friendly, offer Direct Plans (Zero Commission), and let you see all your investments in one place.

Option B: The Official AMC Websites

• Examples: SBI Mutual Fund website, HDFC MF Online.
• Why: Good if you only want to invest in one specific company’s funds. A bit tedious if you want to buy from multiple companies.

Option C: Your Bank’s App (Netbanking)

• Examples: HDFC Netbanking, ICICI iMobile.
• Warning: Banks often sell “Regular Plans” which include a distributor commission. Avoid this if possible. Always look for the word “Direct” in the fund name.

Step 2: The “e-KYC” Process (The Magic Step)

This is where Shankaran gets nervous. “Is it safe?” Yes, it is regulated by SEBI.

1. Download the App (Let’s assume you chose an Aggregator like Groww or Zerodha).
2. Sign Up: Enter your Mobile Number and Email.
3. Enter PAN: The app will fetch your name automatically from the Income Tax database.
4. Aadhaar Verification: Enter your Aadhaar number. You will receive an OTP on your linked mobile number. Enter it.
5. Selfie: The app will ask you to take a quick photo of yourself (Video KYC). Smile!

Done. Your KYC is verified instantly. No xerox copies required.

Step 3: Select Your First Fund

Don’t overthink this. For a beginner, simple is best.

• Search for: “Nifty 50 Index Fund Direct Growth”
• Why Index Fund? It buys the top 50 companies in India (Reliance, TCS, HDFC, etc.). It is low cost and safer than picking random small companies.
• Check the Name: Ensure it says “Direct” and “Growth”.
  • Direct: Saves you commission.
  • Growth: Re-invests your profits (Compounding).

Step 4: Set Up the SIP (The Automation)

Now, let’s configure the “Systematic” part.

1. Click “Start SIP”: (Do not click “One-time/Lumpsum”).
2. Enter Amount: Start with what you are comfortable with. ₹500 is enough.
3. Select Date: Pick a date after your salary day (e.g., 7th of the month).
4. Setup Auto-Pay:
   • The app will ask you to approve a “Mandate” via UPI (PhonePe/GPay) or Netbanking.
   • Note: This gives the bank permission to deduct only the SIP amount on the scheduled date. They cannot take more.

Congratulations! You are now an investor. Shankaran can go back to his filter coffee.

Calculate how much this ₹500 will become in 20 years

Important: Direct vs. Regular Plans

We mentioned this earlier, but it is worth repeating because it saves you lakhs of rupees.

• Regular Plan: You buy through a broker/bank agent. The expense ratio is higher (e.g., 2%). The agent gets a cut from your money every year.
• Direct Plan: You buy online directly. The expense ratio is lower (e.g., 1%). You keep all the profit.

The Impact: Over 20 years, a 1% difference in fees can eat up ₹15-20 Lakhs of your final corpus. Always choose Direct.

Conclusion: It Was Easier Than Ordering Pizza

Shankaran was worried for nothing. He didn’t have to wear a shirt, didn’t have to bribe a peon, and didn’t have to sign 50 pages.

The hardest part of starting a SIP is not the process—it is the mindset. You keep waiting for the “right time.” The right time was yesterday. The second best time is now.

Open your phone. Download an app. Invest ₹500.
Your future self will thank you.

Frequently Asked Questions (FAQ)