Money Basics · SIPs & mutual funds

Starting your first SIP

Enough theory. Here is the exact path from 'I should invest' to money auto-investing monthly. Total setup time: about 30 minutes, once.

Step 1. KYC (one-time, ~10 min)

You need: PAN card, Aadhaar (mobile-linked for OTP), a selfie/video, and a signature photo. Any platform walks you through digital KYC. Approval takes a few hours to a couple of days, covers ALL funds forever.

Step 2, pick a platform

Anywhere that sells DIRECT plans (see 'Direct vs regular plans. The 1% that costs you lakhs'):

• Any MF platform that sells Direct plans, most of the well-known ones do
• The AMC's own site/app works too (fine for 1-2 funds, clunky beyond)

The thing to check is which plan you're being shown. A bank relationship manager, an insurance-agent uncle, or an app that only lists Regular plans is attaching a commission to the same fund without necessarily saying so.

Step 3. Pick the fund (boring is correct)

For a first SIP, the evidence-backed default from earlier chapters: one Nifty 50 index fund, Direct, Growth. That's it. You can add a flexi-cap or mid-cap fund LATER once the habit exists. One fund is a portfolio; five funds you don't understand is a mess.

Step 4. Set amount and date

1. Amount: whatever survives your 50/30/20 math. ₹500 is a real start, raise it later (step-up chapter).

2. Date: 1st-5th of the month, right after salary lands. Pay yourself first.

3. Approve the auto-debit (e-mandate) via UPI/netbanking. This is what makes it automatic, which is what makes it work.

> The best SIP is the one you never think about again. Automation beats motivation. Motivation has bad months.

₹500enough to start. Starting beats optimising.

Takeaway. KYC once, pick a direct-plan platform, start with one Nifty 50 index fund (Direct, Growth), auto-debit just after salary day. ₹500 is enough, start.