# How to Start a SIP in Mutual Funds: Step-by-Step Guide How to start a SIP in India in 7 steps: KYC, goal, fund category, direct plan, platform, amount and auto-debit mandate. Includes a SIP flow diagram. --- Beginner's Guide # How to Start a SIP in Mutual Funds: Step by Step Seven steps from KYC to your first instalment, and a flow diagram of what happens to your money every month. October 4, 2026 6 min read By [Shivaani Mehrra](https://www.linkedin.com/in/shivaani-mehrra/) The 7 steps at a glance Once the SIP is live, nothing more is needed from you. This is the cycle that runs on every SIP date: SIP date Your bank debits the SIP amount through the mandate Money reaches the fund The fund house receives your money (usually same or next working day) Units allotted You get units at the NAV of the day the money is realised Confirmation Units appear in your folio and in your monthly CAS statement Repeat Next month, the same amount buys more units if NAV fell, fewer if it rose The last step is why SIPs work: a fixed amount automatically buys more units when markets fall. That is also why stopping a SIP in a downturn hurts. More on that in * why you shouldn't stop your SIP . **Step it up yearly.** Raising the SIP by 10% each year grows the final corpus far more than picking a slightly better fund. * **Check once a year, not daily.** Download your CAS statement (see the [CAS download guide](/blog/cas-statement-download-guide-india) ) and compare each fund with its category. * **Measure with XIRR.** A SIP's true return is its XIRR, not CAGR. The [XIRR calculator](/calculators/xirr-calculator) explains why. ## Sources & References * [AMFI: investor education on SIPs and KYC](https://www.amfiindia.com) * [MF Central: KYC status and SIP services](https://www.mfcentral.com) * [SEBI: mutual fund regulations](https://www.sebi.gov.in) ## Frequently Asked Questions Common questions about starting a SIP in India. ### How do I start a SIP in mutual funds? + Complete KYC with your PAN and Aadhaar, decide your goal and time horizon, pick a fund category and one fund, choose the Direct plan and Growth option, then set the monthly amount and date on the fund house's website, MF Central or an investment app. Finally, approve the UPI AutoPay or bank e-mandate so each instalment is debited automatically. ### What is the minimum amount to start a SIP? + Many funds accept a SIP from ₹100 to ₹500 a month; the exact minimum is listed on each fund's page and in its scheme document. A small start is fine. Increasing the amount each year (a step-up SIP) matters more than the first instalment. ### How does a SIP work step by step? + On your SIP date, the bank debits the amount through your mandate. The fund house receives the money and allots units at that day's NAV. The units show in your folio and your monthly CAS statement. The cycle repeats each month, buying more units when the NAV is low and fewer when it is high. ### Can I start a SIP without a demat account? + Yes. Mutual fund units can be held in a folio with the fund house, so you don't need a demat account. You only need completed KYC and a bank account. ### Which date is best for a SIP? + Over long periods, the SIP date makes almost no difference to returns. Choose a date a few days after your salary is credited so the debit never fails because of low balance. ### Can I stop or pause a SIP later? + Yes. You can pause or cancel a SIP at any time from the platform where you started it, with no penalty from the fund house. Units already bought stay invested. Exit loads apply only if you redeem units within the fund's exit-load period. Built for Indian Retail Investors ## Already running SIPs? See how they're really doing Upload your CAS statement and FundSageAI shows the true XIRR of every SIP, overlap between your funds, and whether you're on track for your goals. [Analyse My Portfolio ](/login) [Try the SIP Calculator](/calculators/sip-calculator) FundSageAI is an analytics platform. Content on this blog is for educational purposes only and does not constitute financial advice. Always consult a SEBI-registered investment advisor for personalised recommendations.