Simplified SIP registration and payment process: A step-by-step guide

SIP registration
Simplified SIP registration and payment process: A step-by-step guide

A systematic Investment Plan(SIP) is the process of investing a certain amount of funds within every investing time period with a determined rate of return. It is a very popular investment in Nepal and throughout the world. SIP primarily involves investing in mutual funds and is associated with Open-end mutual funds. Interest in SIP has been rapidly increasing among the people in Nepal and in different countries as SIP is a long-term investment. So let’s discuss on requirements to register SIP and continue the payment. We have also included the step-by-step procedure for registrations and payments along with its benefits.

What is SIP registration?

Systematic Investment Registration is an easier way to invest in mutual funds. It is the process that allows the users to invest on a timely basis agreement. The compounding effect, wherein the returns are reinvested, accelerates the growth of invested funds over time. This compounding factor makes SIP different from other investment options. Anyone having a bank account and internet banking facility can register on SIP online.

 Basic requirements for SIP registration

  1. Bank Account
  2. Demat account and BOID number.
  3. Personal phone number and an email account.
  4. Digital wallets for payments

How to register for SIP online?

STEP 1: Collect all the required documents

The required documents include a citizenship card, address details, or proof in the form of a license, utility bill, image of passport-size photos. And above all of this KYC is a mandatory requirement.

STEP 2: Be KYC complaint if you are not yet

The KYC investors need to provide all the basic information. It involves providing identity and proof of documents to comply with regulatory requirements.  

STEP 3: Fill out the SIP form

Obtain the SIP form from the mutual fund house or from an authorized website online. 

  • Fill in your personal details/applicant details
  • Application details
  • Bank Details 
  • Source of Fund (Salary, Business, Loan, others)

Decide the scheme (monthly, quarterly, semi-annually, or annually) plan or option you want to invest depending on your choice. Most of the investors choose the monthly frequency. 

You can also get help from the SIP Calculator in order to decide the time period and return rate for the investment.

STEP 4: Submit Application

Once you finish filling up all the details submit the application.

STEP 5: Payment method

After submitting the application, proceed to the payment method and choose the way you want to pay for the investments. You will have eSewa, Khalti, and Connect IPS as a payment method. Digital wallets may charge an extra Wallet Payment fee.

You will get a response within 24 hr after you have submitted and made payment. If not contact the respective office.

Benefits of SIP registration

  • Affordable: SIP allows one to invest in small amounts ie. from Rs 500 making it accessible to a wide range of investors. This makes it easier for people to invest even though they don’t have a lot of money to invest.
  • Long-term investment: SIP enables sustainable investment. It depends on the investors for how long they want to invest. Consistent investment for a longer period will lead to wealth maximization.
  • Online Access: As we can register our SIP account online, we can also keep on operating it online. We can monitor our SIP investment, view statements, and make changes to our SIP conveniently.
  • Convenient: It is convenient to register accounts and make payments online. We don’t have to go to the bank or do a personal visit if we have to make any kind of changes in our SIPs.
  • Professional Management: The Systematic Investment fund is managed by professional finance managers. Many financial advisors also give information and guides for investing in SIP.
  • Liquidity: Manu Mutual funds offer liquidity. Investors can redeem their units and also make partial withdrawals.

What is SIP payment?

SIP payment refers to the periodic payment that an investor makes in SIP. While registering SIP the investor chooses the interval period to make the investment. So, making a payment of that certain amount at the chosen time interval is known as an SIP payment. SIP payments are convenient and flexible allowing investors to make affordable investments.

SIP payment process

You need to open your mutual fund account and pay the amount you have selected to deposit at every interval. The payment can be made online with the help of an online payment method.

Payment Method Payment charge
Capital’s Bank Rs. 5
eSewa Rs. 5
Khalti Rs. 5
Connect IPS Rs. 4

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FAQs

Which SIP is best to register in Nepal?

Choosing the best SIP depends upon various factors like your risk tolerance, your financial goals and also on the policies of the banks on which you think are best.

What is the Dividend Re-investment plan in SIP?

A Dividend Reinvestment plan is a type of investment plan where the dividend stocks gained form you previous investment is automatically reinvested. Which is beneficial in the long run showing up the effect of compounding.

How many SIPs are there in Nepal?

There are altogether 7 SIPs in Nepal till the date.

Can I cancel SIP anytime?

Yes, you can cancel SIP anytime.

How do I pay my missed SIP installment manually?

You can pay your missed SIP online. Login to your mutual fund account look for payment of the missed installment and make the payment for the missed installment.

How can I skip SIP for a month?

In order to skip your SIP for a month contact your mutual fund company and ask them for a skip of a month. You need to provide them the details of your account and they will set the specific amount date you want to skip and then the date you'll continue.

Can we skip SIP for one or two months in mutual fund investments?

Yes, you can usually skip one or two SIP payments in mutual funds, but it depends on the specific fund's rules. Check the fund's policy and consider reducing your SIP amount temporarily instead to avoid potential penalties. Always consult your respected mutual fund and read the scheme's documentation for guidance.

Conclusion:

After reading the article you’ll be able to register your account and make payments online. We have also talked about the benefits of SIP registration. SIP registration is a straightforward process and we can get a lot of benefits by investing in SIP.