If you’ve ever invested in mutual funds, chances are you’ve heard about SIPs. But do you know you can now set up your SIP completely online without any paperwork? That’s where i-SIP steps in. Whether you’re a beginner or a seasoned investor, understanding i-SIP can help you streamline your investments. In this article, we’ll walk you through everything you need to know about i-SIP, including what is iSIP, iSIP meaning, and the complete iSIP registration process.
What Is SIP?
Before moving towards i-SIP, let’s quickly recap SIP. A Systematic Investment Plan (SIP) is a structured approach to mutual fund investing where individuals commit to investing a predetermined sum at consistent intervals, such as monthly or quarterly. This approach is similar to a recurring deposit but is market-linked, which means your returns depend on the performance of the underlying fund.
The main advantage of SIP is that it encourages disciplined investing. Whether the market is up or down, you continue to invest at regular intervals, which helps in averaging the purchase cost over time—a concept known as rupee cost averaging. Over the long term, this can reduce the impact of market volatility and help you build wealth steadily.
Know More About How to Start SIP Investment?
What Is iSIP?
The term iSIP stands for Internet-based Systematic Investment Plan. It is a completely paperless and convenient method that allows investors to start a SIP in mutual funds through an online platform. Instead of visiting a bank or filling out lengthy paperwork, investors can initiate their investments directly using internet banking. iSIP makes the process faster, easier, and more secure.
You can begin an iSIP not only through the official websites of fund houses or AMCs (Asset Management Companies) but also via registered online brokerages such as Angel One and others. These platforms are certified and authorised to offer SIP services online, providing a smooth and user-friendly experience for beginners and seasoned investors alike.
iSIP Meaning And Benefits
iSIP meaning goes beyond just being an online version of SIP. It simplifies the investment journey by eliminating paperwork, physical submission, and long waiting times. Here are some key benefits:
- Completely paperless: No need to visit the branch or courier any documents.
- Quick processing: URN generation and biller setup can be completed in a few simple steps.
- Flexible: You can choose the amount, frequency, and duration of your SIP.
- Secure: Uses NetBanking, ensuring a safe and reliable transaction method.
What You Need Before Starting iSIP
- KYC compliance: All mutual fund investors in India must complete Know Your Customer (KYC) formalities. This includes submitting documents like your PAN card, address proof, and recent photograph. You must be KYC-verified before starting an iSIP.
- NetBanking Access: iSIP is executed via NetBanking. Your bank should support biller registration for mutual funds.
- Basic investor and investment details: Keep your PAN, bank account details, and SIP preferences (scheme, amount, frequency, duration) handy.
The iSIP Registration Process
Step 1: Visit the AMC website: Start by visiting the website of the Asset Management Company (AMC) or fund house in which you want to invest.
Step 2: Fill the online iSIP form: Click on the iSIP option and fill in your details, including PAN, bank account, address, scheme name, investment frequency, and SIP amount.
Step 3: Generate the URN: Once you submit the form, a Unique Registration Number (URN) will be generated. This will appear on your screen and will also be sent to your registered email ID and mobile number via SMS.
Step 4: Add the fund as a biller: Now, log in to your NetBanking portal and add the mutual fund as a new biller using the URN. You must do this within 10 days. Failing to do so will deactivate the URN, and you’ll have to start the process again.
Step 5: Activate auto-debit: While adding the biller, you can opt for the auto-debit option. This ensures that the SIP amount is deducted automatically from your bank account every month.
Key Information Required For iSIP
- PAN card details
- Bank account number and IFSC code
- Full name and address proof
- Mutual fund scheme name
- SIP amount, frequency (monthly/quarterly), and duration
- Nominee and broker details (if applicable)
Tracking Your iSIP Status
After iSIP registration and biller addition, you can check the status of your investment on the mutual fund’s website or your registered brokerage application. You’ll receive confirmation once your SIP is active, and subsequent transactions will occur automatically on the scheduled dates.
Why Auto-Debit Makes Sense?
Choosing the auto-debit option during biller setup ensures your SIP continues uninterrupted. You don’t need to remember payment dates or worry about missing an instalment. When the scheduled date arrives, the SIP instalment is automatically debited and subsequently invested, ensuring your investment plan remains consistent.
eMandate vs iSIP: Which Is Better?
- Same-day NAV: When your SIP installment is processed through eMandate, and the funds are debited within the cut-off time, you are indeed likely to receive the same day’s NAV. iSIP, being a standing instruction with the bank, might sometimes lead to a delay in the funds reaching the mutual fund house, potentially resulting in a next-day NAV allocation.
- Faster activation: SIPs via eMandate can be active within 7 working days, whereas iSIP may take up to 30 days.
- No URN hassle: eMandate leverages direct debit through NPCI’s platform, eliminating the need for investors to manually add a Unique Registration Number (URN) or SIP Registration Number as a biller on their bank’s portal, which is a common step in the iSIP process.
- Use one mandate for multiple SIPs: Once an eMandate is registered with your bank, you can indeed link it to multiple SIP investments across different mutual fund schemes (within the same AMC or sometimes even across different AMCs, depending on the platform). iSIP typically requires a separate registration for each SIP.
Still, if your bank supports only iSIP, it remains a reliable and effective investment method.
Common Mistakes To Avoid During iSIP Registration
- Skipping KYC: Your registration won’t proceed unless you’re KYC-compliant.
- Missing the 10-day URN deadline: This invalidates the process and requires new registration.
- Entering incorrect bank details: It may lead to payment failures or delays.
- Not checking email/SMS: You might miss URN or biller updates.
Conclusion
iSIP offers a modern, efficient way to automate your mutual fund investments without paper forms or physical signatures. With rising digital adoption, iSIP is increasingly becoming the go-to choice for investors who prefer speed, simplicity, and safety.
By understanding the iSIP meaning and how the process works, you can start investing with just a few clicks. Whether you’re a salaried professional, freelancer, or student planning long-term financial goals, an iSIP can help you stay consistent in building wealth.
