How To Invest In SIP: A Beginner’s Guide To Smart, Disciplined Investing

According to the AMFI Fiscal 2025 report, yearly SIP investment surged over 45.24% year-on-year and crossed INR 2.89 Lakh Crore¹. This shows the rising popularity of SIP investment in India. However, a keen understanding of what SIP investment is, through its nuances, is crucial for devising optimal strategies.

SIP stands for Systematic Investment Plan. It is a mutual fund investing mechanism that allows investors to invest a particular sum periodically over a long tenure. 

For instance, if Mr A made a monthly SIP of INR 1,000 in the XYZ mutual fund. It means he would invest INR 1,000 every month into XYZ. But how to invest in SIP?

To understand the growing preference for SIPs, take a look at the year-on-year SIP contributions below. It highlights the rising trust and participation of Indian investors in mutual fund SIPs.

Types Of SIP Investment Plans In India

Several categories of SIP mutual fund investments exist in India. Understanding these is the first step to exploring how to invest in SIP because it aids in deciding the SIP medium to choose.

1. Regular SIP: It is the most common type of SIP investment, where investors invest a fixed amount at set intervals, usually monthly. It aids in generating returns through compounding, whilst automating investment and instilling fiscal discipline.

2. Step-up SIP: Investors increase their periodic investment amount at set intervals, usually at a particular rate. For instance, if Mr A invests INR 1,000 monthly in SIP and has a 10% yearly step-up, his monthly instalment increases to INR 1100 from INR 1,000 and so on.

3. Trigger SIP: It aids in automating investment decisions by setting triggers. Investors set predefined triggers based on market conditions and fund performance. On the occurrence of set triggers, investors pause, decrease, or increase investments.

4. Flexible SIP: This type of SIP investment provides additional flexibility to investors. They can pause, decrease, or increase investments according to their convenience based on changing financial conditions.

5. Perpetual SIP: Regular SIPs can have a fixed maturity period. However, perpetual SIPs continue indefinitely, until the investor modifies or stops them.

Through SIPs, investors can invest in a range of mutual funds, like equity or debt. They can even choose multi-asset or multi-cap investments. 

Now, let us discuss how to start SIP through a step-by-step SIP guide.

Best SIP Plans: How To Invest In SIP In India

Investors shortlist the best SIP plans in India after analysing their fund performance and risk metrics, followed by a comparison with category benchmarks. Once the best SIP to invest in is selected, the steps given in the following subsection commence, which aid in actual investment. 

1. Step-by-step guide

Discussed below are the steps involved in mutual fund SIP online investment.

A. STEP I: Gather Documents: Investors must first gather all their necessary documents to ensure the easy establishment of their SIP. Investors might consider keeping documents like PAN, Aadhaar, bank account details, photo, etc., handy.

B. STEP II: Select the investment medium: Choosing the best SIP for monthly savings is not enough. Investors must also choose the medium through which they wish to make their investment. There are three primary sources of online SIP account opening.

1. AMC: They manage the mutual fund in question. For example, SBI mutual fund is an AMC that provides all SBI mutual funds, like SBI small-cap fund, SBI multi-cap fund, etc.
2. Platforms or brokerage apps: They curate a list of mutual funds offered by different AMCs. For example, the table below shows some of the best SIP plans on Grip Invest, along with the minimum amount for SIP investment.

Source: Grip Invest²

1. Banks: Investors can also invest in mutual funds directly through banks. 

For offline investment, investors must visit the AMC or a bank branch.

C. STEP III: Know Your Customer: KYC is a mandatory verification and investor information gathering mechanism. To submit their KYCs online, investors can follow the following steps.

• Step 1: Visit the KYC section of any investment platform like GRIP or any mutual fund Asset Management Company (AMC). While an AMC refers to the fund house that manages the mutual fund, platforms curate different mutual funds from a range of mutual fund AMCs.
• Step 2: Enter personal information like name, contact, address, etc., with valid identification proof.
• Step 3: You might have to enter an OTP that arrives at your registered mobile or email, along with live face verification.

D. STEP IV: Register for SIP: The investors must then determine the type of SIP they wish to create and specify the instalment and frequency. However, choosing an optimal frequency of investment is a key decision.

2. Monthly vs quarterly SIPs

Generally, SIP investments are made monthly. But SIP can be quarterly or weekly, too. So, should you choose the norm of monthly investment or something else?

Let’s understand this using an illustration with a sip returns calculator.

Suppose A wants to invest INR 2,000 monthly in an SIP for 15 years. Assuming a return of 12%, take a look at the table below.

Source: SEBI³

So, a monthly SIP gives an additional return. Now you might wonder if a weekly SIP might yield even better. In that case, we must consider investor temperament. If investment were to be done weekly or daily, investors might end up making hasty decisions based on short-term market fluctuations. 

Just like this, there are some common mistakes that investors must avoid to make a successful SIP for long-term goals.

Common Mistakes To Avoid In SIP Investing

Discussed below are some common roadblocks that investors must avoid to optimally understand how SIP works.

1. Stopping SIP during market dips: SIP in equity mutual funds or any other market investments is susceptible to market volatility. However, this volatility eases over time. Therefore, investors might avoid stopping SIPs during market dips because when the market recovers, they might compensate for the loss and gain a positive yield. However, a stoppage results in losing the compounding effect.

2. Unrealistic expectations: Investors should avoid unrealistic expectations of easy and quick money. SIP investment inherently demands fiscal discipline. Moreover, there is no set best time to start SIP. The law of compounding is more effective over time.

Now that we understand how to invest in SIP, let’s introduce a powerful SIP tool.

Infinite By Grip Invest: Turn Bond Returns Into Auto SIPs

Infinite by Grip Invest is a powerful tool designed to help investors maximise returns from their bond investments. Instead of letting your monthly bond interest payouts sit idle, Infinite automatically reinvests them into a debt mutual fund via a Systematic Investment Plan (SIP).

1. This seamless reinvestment strategy helps:
2. Enhance the compounding effect over time
3. Ensure high liquidity and minimal idle cash
4. Create a disciplined, automated investment strategy without any manual effort

Infinite is ideal for investors seeking stable, fixed-income returns while also looking to optimise growth through low-risk debt mutual funds. Whether you're building an emergency fund, planning for short-term goals, or just want your returns to work harder, Infinite helps you turn passive interest into actively compounding investments—automatically.

Conclusion

SIPs have emerged as one of the most effective ways to build long-term wealth. They help you invest consistently, benefit from rupee cost averaging, and tap into the power of compounding, without worrying about market timing. Whether you're investing INR 1,000 or INR 10,000 a month, SIPs can help you stay financially disciplined and goal-focused.

With features like Infinite by Grip Invest, you can now automate reinvestment by turning bond interest payouts into SIPs in debt mutual funds, maximising returns with minimal effort. Start your journey today with Grip Invest, India’s one-stop destination for fixed returns.

So, don’t forget to visit Grip Invest Today!

FAQs On How To Invest In SIP

1. How long should I invest in SIP?

There is no set tenure for SIP investment. The efficiency of compounding increases over time. Investors can use SIP calculators to gauge the optimal tenure.

2. Can I change the amount in SIP?

Changing the SIP amount depends on the SIP in question. While in the case of step-up and flexible SIPs, the amount can be changed, some SIPs might not offer this facility.

3. Is SIP good during a market crash?

Stopping SIP investment during a market dip adversely impacts the effect of compounding. The market is prone to volatility, but it recovers over time. During recovery, investors improve profitability. 

References:

1. AMFI India, accessed from: https://www.amfiindia.com/Themes/Theme1/downloads/AMFI_AnnualMFReport2025.pdf

2. Grip Invest, accessed from: https://www.gripinvest.in/assets#active#mutual-funds

3. SEBI, accessed from: https://investor.sebi.gov.in/calculators/sip_calculator.html

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