Nowadays investors do have an option of getting themselves enrolled for Systematic Investment Plans through internet banking using i-SIP or internet basd SIP facility. This facility has made the investment in mutual funds super easy. It is a paperless & secure option and involves no additional costs.
Although you should have access to internet banking services which is to be KYC compliant in order to use this service. At last, your bank must be among the one who is approved to offer the i-SIP facility.
In this article, you will get to know all the details regarding adding i-SIP facility through your SBI Net banking account.
Process to add i-SIP by SBI Net Banking-
Following steps are needed to be performed in order to add i-SIP-
- Search the SBI Net Banking page.
- Enter your log in credentials i.e. Username and password and click on login.
- Select the “Bill payment” Tab from the Home page of Net Banking.
- Click on the “Manage Biller” from the available options.
- Select the “Add” from the Manage Biller Option
- Here You will get the list of all Mutual Funds Companies(AMCs) operating in India and The list of City/States. Select the Company from the drop down, which you want to add.
Biller addition is required to be completed within the 10 days of URN generation. Non-doing so can deactivate the URN.
- After clicking on “Go” button, you will be required to fill the details of manage biller. Here you will have to give details such as-
- You will have to add a Nick Name here to remember the SIP
- Give the details of your Unique Registration Number(URN) of the fund you are having
- At auto pay, you have two options given- Yes or No. When you will select”Yes”for auto pay, amount of SIP installment will automatically be debited from the bank account of the investor.
- Auto pay limit is not required to be mentioned. You can leave it as blank.
- Select the account details of yours, from where you will deduct the money.
- Now Click on “Submit”.
- Further, you will receive an OTP on your registered mobile number.
- Enter the High-Security Password Received and click on “Confirm”.
- After the completion of the above process, a confirmation screen will appear. You can take a print out or save the confirmation screen for future references.
Now your i-SIP is all ready for future activities.
What is SIP?
SIP is the short form of the systematic investment plan. Under it, an investor keeps making the payment of a certain sum of a fixed amount on a regular interval of time i.weekly, monthly, quarterly etc. for a fixed period of time in a mutual fund chosen by him. SIP’s are a good way to save money and known as a disciplined investment.
What is online i-SIP Form?
On the website of the fund, an online i-SIP form is available for the investors who want to get themselves registered. At the time of registration you will have to provide details i.e- PAN, your bank details, address, name of the SIP Scheme, amount, frequency of MF and time period.
IS SIP a good option for investing?
SIPs are considered to be a good option for savings in a disciplined manner. No one can predict whether you will earn a profit or incur loss while investing in SIP. Still investing in mutual funds through SIP is considered to be risk-adjusted and risk-free returns to a large extent.
Is SIP tax-free?
Only if a person is investing under Equity Linked Saving Schmes(ELSS) or tax saving mutual fund scheme, then you can save taxes under section 80 C of the income tax. Thus not all the SIPs are tax-free, but the few SIPs mentioned above, come under tax-free schemes.