How to Start SIP Online: KYC, Direct Plan, Mandate Steps

To start a SIP online in India, you need three things in place: validated KYC linked to your PAN, an investing platform that offers direct plans, and an automatic bank mandate (UPI AutoPay or NACH). Once these are ready, you choose a scheme, an amount and a date, add a nominee, and the first instalment is debited on the chosen date. As of October 2026, the whole process can be done on your phone in a day, with no paperwork.

If you are new to how SIPs work, read our beginner's guide to SIP first. This article is the practical checklist for setting one up.

Step 1: Check your KYC status

Mutual fund KYC is held by SEBI-registered KYC Registration Agencies (KRAs): CAMS, CVL, KFintech, NDML and DotEx. Since April 2024, KRAs verify your PAN, name, address, email and mobile against official records, and your KYC shows one of three statuses.

Check your status for free on any KRA website or on an AMC's site by entering your PAN.

If you have no KYC or it is not validated: most platforms run Aadhaar-based eKYC. You enter PAN and Aadhaar, approve an Aadhaar OTP or DigiLocker fetch, upload a signature, and record a short video or selfie for in-person verification. It usually becomes validated within a day or two. Make sure PAN is linked with Aadhaar first, or the status will stay on hold.

Step 2: Choose where to invest

Every scheme has a direct plan (no distributor commission, lower expense ratio) and a regular plan (commission included, often with advice). The portfolio is identical. Our comparison of direct vs regular mutual funds shows how a 1% cost gap compounds.

Where you can start a direct-plan SIP:

Check that an app is a SEBI-registered intermediary before you link your bank account. If you buy through a distributor, you will be in the regular plan.

Step 3: Pick the scheme, amount and date

• Scheme: match the fund category to your goal and time horizon. Our guide on how to choose a mutual fund explains the order of checks.
• Plan and option: select Direct and Growth unless you need regular payouts.
• Amount: many schemes accept monthly SIPs from ₹100 to ₹500. Under the Chhoti SIP framework introduced by SEBI and AMFI in 2025, a first-time investor can start a ₹250 SIP in participating schemes. It needs the growth option, a NACH or UPI AutoPay mandate, and is designed for at least 60 instalments, though you can still stop early. You can hold up to three, one per AMC.
• Date: choose a date a few days after your salary is credited, so the debit never bounces.
• Step-up (optional): many platforms let you raise the SIP by a fixed percentage or amount each year.

Step 4: Set up the bank mandate

A mandate authorises the AMC or platform to debit your account automatically.

Two tips. First, set the mandate's maximum amount higher than your current SIP, for example ₹25,000 for a ₹10,000 SIP, so step-ups and new SIPs can use the same mandate. Second, if the mandate is still registering, many platforms let you pay the first instalment immediately by UPI or net banking. To review or cancel mandates later, see our guide to UPI AutoPay mandates.

Step 5: Add a nominee

SEBI revised the nomination rules for mutual fund folios and demat accounts with effect from 1 September 2026:

• For a single-holder folio, you must either name a nominee or sign a declaration opting out.
• You can name up to three nominees and set each one's share. Without a split, they share equally.
• Only the nominee's name and relationship are mandatory. Date of birth is needed for a minor.
• Joint holdings remain optional for nomination.

Adding a nominee costs nothing and saves your family a long transmission process later.

Step 6: Confirm and track

After you submit, you will get an SMS and email from the AMC or registrar. Units are allotted at the NAV of the day the money reaches the fund, so the debit date and the allotment date can differ by a day. Check your consolidated account statement (CAS) each month to confirm every instalment was invested in the direct plan.

Worked example: what the SIP could grow to (illustrative)

Ravi, 27, starts a ₹5,000 monthly SIP in a diversified equity fund. Assuming an illustrative 12% a year return, compounded monthly:

Five more years more than doubles the end value, and a yearly step-up that tracks pay rises has an even bigger effect. These figures are illustrative. Equity returns are not guaranteed and vary widely from year to year. Try your own numbers with our SIP calculator.

Mistakes to avoid when starting online

• Starting in a regular plan by accident. Some apps default to regular plans. Look for "Direct" in the scheme name.
• Leaving KYC as "registered". Redo Aadhaar-based KYC so you can invest with any AMC.
• Setting a debit date before salary day. A bounced mandate can attract a bank charge, and repeated failures may cancel the SIP.
• Skipping the nominee. Since September 2026, you must add one or formally opt out.
• Choosing the IDCW option when you do not need payouts. Growth keeps money compounding, and IDCW payouts are taxed at your slab rate.

Key takeaways

• As of October 2026, starting a SIP online needs validated KYC, a direct-plan platform, a scheme, and a UPI AutoPay or NACH mandate.
• Check KYC status on a KRA site. "Validated" lets you invest with any AMC; "on hold" blocks new investments.
• AMC sites, MF Central, MF Utilities, broker apps and fee-only advisers all offer direct plans. Distributors place you in regular plans.
• UPI AutoPay is instant. Mutual fund debits up to ₹1 lakh need no extra authentication each time.
• From 1 September 2026, single holders must nominate up to three people or opt out in writing.
• Projections in this article are illustrative, not guaranteed returns.