SIPs have become one of the most popular ways to invest in mutual funds in India. In February 2026 alone, SIP contributions stood at ₹29,845 crore, with 9.44 crore contributing SIP accounts and SIP assets at ₹16.64 lakh crore or 20.3% of the mutual fund industry’s assets. It highlights how deeply this investing habit has caught on with retail investors.
But while the idea of investing regularly is simple, the process of starting a SIP can still feel tedious for some investors. Forms, bank mandates, and avoidable delays can make the first step seem more complicated than it should be.
That is where the question, “What is iSIP in a mutual fund?” starts to matter. It opens the door to a more convenient way to begin regular investing without the usual friction. Read on to understand how it works, what makes it useful, and why many investors are paying attention to it.
What is iSIP in a mutual fund?
iSIP is an Internet-based Systematic Investment Plan, which is an online facility to start regular mutual fund investments using Net Banking. It enables investors to set up recurring, automated bank account deductions, substituting a safe, digital mandate for paper forms. iSIP makes the process faster, easier, and safer.
How iSIP Differs from Traditional SIP
iSIP differs from a traditional SIP mainly in the registration journey, documentation, and investor experience. It is designed to make SIP setup more digital and convenient. However, the exact process depends on the AMC, platform, and mandate type.
In many cases, traditional SIP registration may involve physical NACH paperwork, while online routes may use biller registration, OTM, or e-mandate authorisation. Activation timelines also vary.
Some platforms process e-mandates much faster than physical mandates, while certain iSIP registrations still need a lead time before the first instalment. Cancellation is often available online. Overall, iSIP can offer greater convenience and speed, but its features are not identical across all mutual fund platforms.
Benefits of Using iSIP
It has similar benefits as a traditional SIP. Key benefits of using iSIP include-
- Completely digital and convenient- Visiting a branch or having documents couriered is not necessary. The entire procedure can be set up online, typically with a few clicks.
- Quick registration- iSIP can make the registration journey smoother than paper-based routes.
- Improved security- iSIP transactions are carried out via the Net banking portal of your bank, guaranteeing a secure and verified transaction.
- Flexibility- You can choose the frequency of the investment amount(monthly/quarterly) and duration. You can also easily change or pause SIP through online platforms.
- Rupee Cost Averaging– Investing a set amount on a monthly basis helps average out your buying cost over time and reduces market volatility because you buy more units when the market is low and fewer when it is high.
- Minimum investment- Many SIPs can be started with as little as ₹500, while some eligible options are available from ₹250.
- Tracking is easier- Through your brokerage or AMC’s online portal, you can monitor, control, or pause your iSIP.
How to Register for iSIP (Step-by-Step)
Step 1: Complete your KYC
You need to be KYC-compliant before investing in mutual funds. This is mandatory for all mutual fund investors in India.
Step 2: Keep your bank account ready
You should have an active bank account linked to your investment details. In many cases, online bank access is also needed for the registration process.
Step 3: Visit the AMC or investment platform website
Go to the website of the mutual fund house or platform where you want to start the SIP. Then select the online SIP or iSIP option.
Step 4: Enter your SIP details
Fill in the required information, such as the mutual fund scheme, SIP amount, investment frequency, and bank details.
Step 5: Generate the registration reference
In some biller-based iSIP setups, a Unique Registration Number (URN) is generated after you submit the request.
Step 6: Authorise the auto-debit
If your iSIP follows the biller route, log in to your bank’s net banking portal and add the AMC as a biller using the URN. Then complete the bank-side authorisation.
Step 7: Wait for activation
Once the bank authorisation is completed, the SIP moves towards activation. The exact timeline can vary depending on the AMC, bank, and mandate type.
Importance of URN in iSIP Process
In biller-based iSIP registration, the Unique Registration Number (URN) acts as an important reference number. It links the investor’s SIP request with the bank-side biller setup and is used while adding the AMC as a biller in the net banking portal. This helps move the SIP towards auto-debit activation without physical paperwork.
The URN also helps with tracking and validation. Since it is tied to the registration request, it can be used to identify the application and resolve registration-related queries. However, investors should note that the URN validity period is not the same everywhere. Depending on the AMC or route, it may remain valid for 7 days or 10 calendar days, after which the request may lapse if the bank-side step is not completed.
iSIP vs e-Mandate: Which Should You Choose?
This is not a perfect apples-to-apples comparison, because iSIP is an online SIP registration route, while e-mandate is a digital debit authorisation method. In practice, e-mandate is often seen as the more seamless option because it can reduce manual steps and shorten setup time on supported platforms. NSE, for example, says e-mandates are processed within 2 working days, whereas physical mandates take 10.
That said, it is better not to claim that e-mandate is always better in every case. The actual experience depends on the AMC, the bank, and the platform being used. Also, NAV allotment is based on fund realisation before the cut-off time, so no route can guarantee same-day NAV in all cases
FAQs
Yes, you can cancel or modify iSIP very easily and it can be done online through your AMC or broker platform.
iSIP (Internet-based Systematic Investment Plan) is completely online method to begin mutual fund investments using net banking, whereas traditional SIP often involves physical paperwork, signed mandates, and slower processing times.
iSIP is completely digital, it enables faster activation, it has high security and it is flexible.
Start with KYC compliance, because KYC is mandatory for mutual fund investing. But do not say the document set is always PAN, address proof, Aadhaar, and photograph in every case. AMFI says KYC uses prescribed identity and address documents such as Passport, Aadhaar or PAN card, along with address proof. Also, the URN-plus-biller route is not universal. It applies to biller-based iSIP setups, while some AMCs also use OTM or other online mandate routes.
URN stands for Unique Registration Number. In biller-based iSIP setups, it acts as a reference number used when adding the AMC as a biller in the bank portal. It helps with bank-side registration and tracking. But do not present it as central to every iSIP flow across the industry.
If your AMC or platform supports e-mandate, it may offer a quicker and more seamless setup. If not, biller-based iSIP can still be a convenient online route.
