Unlock Smart Investing: Your Guide To I-SIP

Many investors use Systematic Investment Plans (SIPs) to invest in mutual funds at regular intervals, instead of relying on a single lump sum decision. A SIP involves investing a predetermined amount in a mutual fund scheme periodically—for example, daily, weekly, monthly, or quarterly.

As investment processes have increasingly moved online, many investors have shifted to automated SIP registrations, where applications are made through paperless digital processes and the SIP amount is automatically debited from the investor’s bank account.

This digital SIP process is often called i-SIP. It refers to a SIP that is registered online, with instalments automatically debited at specified intervals through a digital mandate. This guide explains the meaning of i-SIP, how it works, and some considerations for potential investors while starting one.

Table of contents

• What is i-SIP in mutual funds?
• How i-SIP differs from traditional SIP
• The benefits of choosing i-SIP for your investments
• How to start an SIP online with Bajaj Finserv AMC: A step-by-step guide
• Documents required for i-SIP
• Linking your bank account for auto debit
• Who should consider an i-SIP?
• Important considerations for i-SIP investors

What is i-SIP in mutual funds?

An i-SIP is a term for an internet-based, paperless SIP registration process. It is not a separate mutual fund category or investment mode – it is simply an SIP registered online. An i-SIP retains the core structure of an SIP while shifting registration and payment authorisation to digital modes.

i-SIP registrations are typically linked to an e-mandate or auto debit instruction. This authorisation allows periodic debits from the investor’s bank account on a selected date, subject to successful mandate approval. I-SIP only indicates that the SIP has been set up online. The potential investment outcomes continue to depend on market movements and the chosen scheme’s features.

Also Read: What is 7-5-3-1 Rule in Mutual Fund SIP Investment?

How i-SIP differs from traditional SIP

Mode of setup:

i-SIP: Registration is completed online and is generally paperless, using internet banking or digital platforms.
Traditional SIP: May involve offline processes, including physical forms and documentation.

Speed & convenience:

i-SIP: The digital process may result in faster registration and mandate setup, subject to bank approval timelines.
Traditional SIP: Offline steps and manual verification may lead to longer processing times.

Flexibility:

Both options allow investors to choose the investment amount, frequency, and duration. i-SIP may offer additional convenience by allowing investors to view, modify, pause, or discontinue mandates online, subject to the platform’s features and applicable bank rules.

The benefits of choosing i-SIP for your investments

i-SIP combines the potential advantages of regular SIP investing with digital ease, catering to the preferences of today’s tech-savvy investors.

• Instant and paperless submission

i-SIP follows a paperless SIP setup, eliminating the need for printing, scanning, or physically submitting forms.

• Convenience and accessibility

Online initiation may make it easier for investors to start and monitor SIPs using a phone or computer. Once the mandate is active, instalments are debited automatically on the chosen SIP date, supporting a regular investment process.

• Flexibility in managing investments

Depending on the platform and bank rules, i-SIP may allow investors to view active SIPs, modify instalment amounts, change SIP dates, pause contributions, or discontinue mandates online without physical documentation.

• Faster mandate registration (subject to approval)
  Digital mandates used for i-SIP may be registered more quickly than physical mandates, subject to bank processing and verification timelines.
• Reduced operational dependency
  By using digital authorisations and online platforms, i-SIP may reduce reliance on manual follow-ups, physical paperwork, and in-person visits.

How to start an SIP online with Bajaj Finserv AMC: A step-by-step guide

Step 1: Visit Bajaj Finserv AMC’s website and navigate to the transaction portal

Investors may begin by visiting the official Bajaj Finserv AMC website and select the investor log in option at the top right of the home page.

Step 2: Complete onboarding/log in:

Enter your PAN details. If you are an existing investor, you will be asked to enter an OTP sent to your email address and mobile. New investors will need to submit some basic information to be onboarded with Bajaj Finserv AMC.

Step 2: Complete KYC requirements before investing

KYC status must be validated for SIP registration to be completed.

Step 3: Select a mutual fund scheme aligned with goal

Bajaj Finserv AMC offers schemes across categories such as equity, debt, and hybrid, among others. Investors may shortlist schemes based on their time horizon, risk appetite, suitability, and the scheme’s stated investment objective.

Step 3: Choose SIP details: amount, frequency, and start date

After selecting a scheme, the investor can choose between lumpsum and SIP modes. For SIP, choose the instalment amount, frequency (for example, per month), and the preferred start date.

Step 4: Set up the auto-debit mandate (e-mandate/AutoPay) for instalments

A mandate is a pre-authorised instruction that allows periodic debits from the investor’s bank account for SIP instalments. Mandate approval is subject to bank and payment system processes. This process may not be required for existing investors.

Step 5: Confirm, submit, and track

After reviewing the details, the investor may submit the request. Mandate activation timelines may vary depending on banks and processing systems. Investors may track the mandate and SIP status online after submission.

Also Read: Long Term SIP: Why It is More Suitable for Investment

Documents required for i-SIP

To initiate an i-SIP, the keep the following information handy:

• Valid PAN card
• Aadhaar or another officially valid identity document, as applicable
• Bank account details
• Registered mobile number and email address for one-time passwords (OTPs) and confirmations

Linking your bank account for auto debit

For SIPs, including i-SIPs, instalments are generally processed through an authorised debit mandate. Investors may need to link their bank account and approve the selected mandate to enable periodic debits. Internet banking or UPI-based authentication are commonly be used, with OTP and verification steps forming part of the approval process.

Who should consider an i-SIP?

An i-SIP may be explored by:

• First-time investors who prefer a paperless process to start SIPs
• Investors comfortable with managing financial transactions online
• Individuals seeking a relatively quicker setup without offline formalities

i-SIP may be suitable for investors who value digital convenience while maintaining a disciplined, periodic investment approach.

Important considerations for i-SIP investors

While i-SIP simplifies the registration process, investors are recommended to consider the following:

• Mutual fund investments are subject to market risks, and investment values may fluctuate due to market conditions.
• Investors should ensure that sufficient funds are available in their bank accounts on the due date. Missed auto-debits may result in charges levied by banks, and repeated failures may lead to SIP cancellation, depending on the applicable platform, bank, or AMC terms.
• It is advisable to review the scheme information document and related disclosures carefully before initiating any investment.

Also Read: SIP top-up vs regular SIP: Key differences

FAQs

What is the minimum investment amount for i-SIP through Bajaj Finserv AMC?

The minimum SIP amount depends on the specific scheme and is detailed in the scheme information document. Many schemes permit SIPs starting from Rs. 500, subject to scheme terms.

Can I change my i-SIP amount or frequency after starting it?

Some platforms allow modifications, while others may require investors to stop the existing SIP and register a new one. Changes are subject to platform features, bank processes, and mandate conditions.

How long does it take for an i-SIP to become active after registration?

An i-SIP typically becomes active after the digital mandate is approved. Activation timelines vary depending on bank and payment system processes. The first debit usually occurs on the next scheduled instalment date after activation.

What happens if my auto debit fails for an i-SIP instalment?

If an auto-debit for an i-SIP instalment fails, the SIP instalment for that period is not processed. The bank may levy charges for the failed debit, depending on its policies. Repeated auto-debit failures may result in the SIP being discontinued, subject to the terms of the platform, bank, or asset management company.

Is it mandatory to complete KYC before starting an i-SIP with Bajaj Finserv AMC?

Yes. KYC compliance is mandatory for all mutual fund investors in India, as required under SEBI regulations and operational guidelines issued through the KYC registration framework.