If you are searching for a safe and simple way to grow your money, how to start SIP in mutual funds is one of the best questions you can ask today. SIPs help beginners build long-term wealth without taking big risks or needing expert knowledge.
In this guide, you will learn everything you need to start your first SIP even if you have never invested before.
What You Need Before You Start SIP in Mutual Funds
Before we explain the steps, it is important to understand why SIP is useful. A SIP allows you to invest a fixed amount every month in a mutual fund. You do not need market knowledge. You do not need to time the market. You only need consistency.
This article will show how to start SIP in mutual funds in the easiest possible way and help beginners avoid mistakes.
Step by Step: How to Start SIP in Mutual Funds
Below is the full process explained in simple words.
Step 1: Choose an Investment App
To begin how to start SIP in mutual funds, you must choose a trusted investment app.
Popular and safe apps in India are:
• Groww
• Zerodha Coin
• Kuvera
All these apps are SEBI-regulated platforms. They allow easy KYC and wide fund options.
Keep in mind:
• Avoid unknown apps
• Choose an app with zero commission
• Select an app with easy tracking dashboards
Step 2: Complete Your KYC
Every investor must complete KYC before starting SIP. You can do KYC fully online.
You will need:
• PAN card
• Aadhaar
• A selfie
• Bank account
This process takes only a few minutes. Once approved, you can start investing immediately.
Step 3: Select the Right Type of Fund
Choosing the correct fund is very important. Beginners should consider these fund types:
1. Index Funds
These funds follow the market index like Nifty 50. Very safe for beginners.
2. Large Cap Funds
These invest in stable, big companies. Lower risk compared to mid-cap and small-cap funds.
3. Liquid Funds
For short-term goals or emergency money.
While learning how to start SIP in mutual funds, new investors often get confused. Do not choose funds just because someone recommended them. Choose based on your risk level and goals.
Step 4: Start SIP with ₹500 or More
You can start SIP with as low as ₹500 per month.
Tips for beginners:
• Start small
• Increase the amount every year
• Do not stop SIP during market falls
• Set auto-debit to avoid missing payments
This is one of the biggest advantages of how to start SIP in mutual funds. Anyone can begin with a low amount.
Step 5: Stay Invested for 5+ Years
SIP works only when you stay invested for the long term.
Why long term?
• Market goes up and down in short term
• Compounding grows money only after a few years
• Long-term investing reduces risk
If you follow the correct steps of how to start SIP in mutual funds, staying invested for 5 to 10 years can help you build strong wealth.
Common Mistakes to Avoid
Many beginners make small mistakes that affect their returns.
Avoid these:
• Checking NAV every day
• Stopping SIP during market corrections
• Selecting too many funds
• Choosing funds based only on past performance
Following the right process of how to start SIP in mutual funds helps you avoid emotional decisions.
How to Select the Best Fund for You
Use these simple filters:
• Consistent long-term returns
• Fund manager reputation
• Low expense ratio
• Large and stable fund size
Avoid high-risk funds like sector funds or thematic funds if you are a beginner.
Benefits of SIP for Beginners
• Low risk compared to direct stock trading
• Small monthly amount is enough
• Automatically builds discipline
• Works well for long-term goals like home, education, retirement
• No need for market knowledge
This is why lakhs of people search for how to start SIP in mutual funds every month.
Example: SIP ₹5000 per month
If you invest:
• ₹5000 per month
• For 10 years
• Expected return: 12 percent
You could build around ₹11 lakh from a total investment of just ₹6 lakh.
This is the power of consistency.
Best Time to Start SIP
Today.
There is no perfect market condition. The earlier you start, the more compounding works for you. The biggest mistake is waiting.
Where to Get Help if You Are Confused
If you want guidance on fund selection or long-term planning, you can get support from HAWMS.
We help Malayalis plan investments, reduce financial mistakes, and choose the right funds based on goals.
WhatsApp us for a quick consultation:
For Better Learning
Read our related guide:
The Right Salary Flow: how to save money from salary
This will help you understand how to create a strong money flow before you start SIP.
Final Thoughts
Learning how to start SIP in mutual funds is the easiest and smartest step you can take for your financial future. You only need a few minutes for KYC, a trusted app, and a consistent monthly amount. With patience and discipline, SIP can help you build wealth without stress.
Start small. Start today. Let compounding work for you.
If you want help selecting the right fund, message us on WhatsApp.
We are here to guide you.