How to Start SIP in India: Beginner’s Guide for 2025
Last published/edited on 2025-05-01
If you're new to investing and wondering how to start a SIP in India, this guide is for you. SIPs are one of the easiest ways for beginners to start building wealth steadily. In this guide, we’ll walk you through the simple steps to start your first SIP in 2025. The goal behind every wealth creation step is the same: 'Your money must work for you even when you are asleep.'
What is a SIP?
SIP (Systematic Investment Plan) means investing a fixed amount regularly (like monthly) into a mutual fund. It's a great way to:
- Start small (as low as ₹500/month)
- Automate investing
- Build wealth slowly with discipline
SIP Growth in 2025 (Quick Stats)
- Monthly SIP contributions reached ₹25,000 crore+ in 2025.
- Over 8 crore SIP accounts in India.
- Total mutual fund AUM: ₹65.7 lakh crore. Takeaway: More and more Indians are starting SIPs and staying invested. You can too.
Step-by-Step: How to Start SIP in India
1. Choose a Platform Use any of these trusted platforms:
- Groww –> clean UI, fast KYC.
- Zerodha (Coin) –> great if you also invest in stocks.
- Paytm Money –> easy to use, linked with Paytm wallet.
- Kuvera –> focused purely on mutual funds. Here's a percentage share showing the platform with most users as per NSE. List of top stock brokers in India
2. Complete KYC Most apps let you finish KYC online in a few minutes — PAN, Aadhaar, bank details, selfie.
3. Pick a Fund Start with a large-cap or index fund. For example:
- Nifty 50 Index Fund.
- HDFC Top 100.
- UTI Nifty Next 50.
4. Decide Amount Start with ₹500–₹5000 per month. Don’t overthink — just get started.
5. Set Auto-Debit Link your bank account and pick a SIP date. The app will auto-invest monthly.
6. Monitor Occasionally Check progress once a month, but avoid panic during market dips. SIP is long-term.
SIP vs FD: What’s Better?
| Feature | SIP | FD |
|---|---|---|
| Returns | 10–12% (market-linked) | 5–7% (fixed) |
| Taxation | LTCG after ₹1L | Fully Taxable |
| Liquidity | Easy to redeem | Lock-in period |
| Risk | Low (long term) | Very Low |
Conclusion: SIPs beat FDs for long-term wealth. FDs are better for short-term safety.
What is an NFO?
NFO = New Fund Offer (a new mutual fund being launched). Example: HDFC Manufacturing Fund raised ₹12,500 crore in 2024.
Should You Invest?
- If it offers a unique theme or access.
- Don’t invest just because the price is ₹10.
- Stick with proven funds unless the NFO has a solid, fresh strategy.
Final Tips
- Start small, stay regular.
- Increase your SIP yearly.
- Choose direct funds via trusted platforms.
- Don’t stop when markets fall, that's when SIP helps most. When market falls, mutual fund unit price aslso falls as a result you get more units when you purchase. These will increase in future to add on to your over all profit.
