Post demonetization, the demand to invest in mutual funds increased manifold. Investments in mutual funds were considered a good option since it offered high returns and was a safe investment option. Mutual funds were particularly popular because they allow individual investors to invest in a variety of funds and securities. Another added benefit is that you don’t have to manage your mutual funds on your own since your funds are managed by the professionals.
What is SIP and i-SIP?
To manage the funds better and to maintain consistent investments, SIP was introduced. SIP stands for ‘Systematic Investment Plan’. It is a mutual funds management tool. SIP offers three major benefits:
- Disciplined investments which often lead to higher returns
- Helps you manage your financial goals without disrupting your budget
- Is a convenient and flexible investment method
With SIP, you can invest a minimum of Rs. 500 in mutual funds either on a monthly or a quarterly basis. It also allows you to decide your own investment amount. It comes with only one condition, i.e, investments should be in the denominations of Rs. 500.
SIP has further been simplified with the advent of i-SIP. i-SIP stands for ‘Internet-based Systematic Investment Plan’. With this, you can access SIP via internet banking. In this process, you just need to add the biller to your bank account for consistent mutual funds payment. But it is mandatory that your bank account has a net banking facility.
Every bank has a different way of adding a biller to your bank account. If you have an account with Kotak Mahindra Bank and wish to enable SIP via internet bank, read the content below. If you have a bank account at Axis/ICICI/HDFC/SBI, then you can read our other blogs for these specified banks explaining the process of i-SIP.
How to add i-SIP in Kotak bank through net banking:
To add a biller, follow the process mentioned below in an orderly fashion. The process has been divided into various sub-headings for your convenience and better readability.
- To begin with, you need to visit Kotak bank’s net banking portal. You can visit the portal by clicking on the link mentioned below:
- Log in using your customer Id and net banking password.
- Once you have access to your account, look for the ‘BillPay/Recharge’ option which is available at the top of the screen.
Adding a biller:
- A new screen will appear after you have clicked on ‘BillPay/Recharge’ option. The screen will display an option ‘Click here to add a biller’. You need to select this option as this option will allow you to add a new biller.
- From here you will be taken to ‘Add biller’ section. Under this section, you will find a variety of billers like Mutual funds, Utility payments, Mobile, Insurance premia, Donations, Subscriptions, and some more options. From this list of billers, you need to choose ‘Mutual funds’.
- After you have selected ‘Mutual funds’ as your biller, a new dropdown list will appear from where you will have to choose the name of your Asset Management Company.
- Move on by clicking on ‘continue’. You will be taken to the next step, i.e, Add biller: Mutual funds.
Mutual funds details:
- In this section, you will be asked to put in certain details like:
- Nickname: you need to put in a nickname for your mutual fund. Make sure that the nickname is descriptive in nature and can be remembered easily.
- Unique Registration Number (URN): you can check your email/registered mobile number for URN. URN is sent to you when you first register for SIP.
- Set Autopay: under this, you can choose between ‘yes’ and ‘no’. It is advisable that you select ‘yes’. With this option, you won’t have to remember to pay for funds on a regular basis. Funds will automatically be deducted from your bank account.
- Bill Amount: you can choose between ‘pay full amount’ and ‘set a limit’. Select ‘pay full amount’ for this section.
- Pay via: you need to select ‘bank account’ as that is the only option available. After choosing this, you also need to choose the account number.
- Once you have put in all the credentials, click on ‘Add biller’.
Verification and Confirmation:
- This is the last stage. After you have clicked on ‘Add biller’, you will be taken to the summary page. You will see the summary of the information you have put in. verify the details and click on ‘Confirm’.
- In the end, a success message will be displayed on the screen confirming the addition of the biller.
Can SIP be terminated?
Yes, SIP can be terminated due to insufficient funds in your bank account. Your SIP automatically pays for your mutual funds from your selected bank account on a regular basis. If you constantly have insufficient funds, then SIP will be terminated.
Can I avail SIP facility for all types of mutual funds?
Yes, you can avail SIP facility for all kinds of mutual funds.
Does investment in SIP offer a fixed return?
SIP does not have a fixed rate of interest. Two things are taken into consideration while determining the interest rate: first is market fluctuations and the second one is the type of fund you have invested in.
Name some mutual funds offered by Kotak Mahindra Bank?
Some mutual funds offered by Kotak Mahindra Bank are Kotak Corporate Bond Fund, Kotak Emerging Equity Scheme, Kotak Money Market Scheme and some more.