Asset Management Company (AMC) SIP: Detailed Guide
With SIP contributions hitting an all-time high of ₹28,464 crore in July 2025 and over 9 crore contributing accounts, more Indians are choosing systematic investment plans than ever before. But what exactly is an AMC SIP, and why should you care?
An AMC SIP (Asset Management Company Systematic Investment Plan) lets you invest directly with fund houses without any middlemen. This means lower costs and potentially higher returns for you.
In this detailed guide, we will show you everything about AMC SIPs. You’ll learn what makes them different from regular SIPs, their benefits, and how to get started.
What is AMC SIP?
AMC SIP is an acronym of Asset Management Company Systematic Investment Plan. It is a direct investment type where you deal directly with the mutual fund company.
Instead of going through a broker or distributor, you set up your SIP directly on the AMC’s website or app. Companies like SBI Mutual Fund, HDFC AMC, and ICICI Prudential offer this direct route.
The key difference? No intermediaries mean lower fees and better returns for you.
AMC SIP vs Regular SIP: What’s the Real Difference?
Many investors get confused between AMC SIPs and regular SIPs. Both invest in the same funds, but the route matters a lot.
| Feature | AMC SIP (Direct) | Regular SIP |
| Cost | Lower expense ratio (0.5-1.2%) | Higher expense ratio (1.5-2.5%) |
| Returns | Higher due to lower costs | Lower due to distributor fees |
| Management | Self-managed | Advisor support available |
| Platform | AMC’s website/app | Broker platforms |
| Control | Direct control over investments | Through intermediary |
The expense ratio difference might seem small, but it compounds significantly over time. A 0.5% annual saving can mean lakhs of extra rupees over 15-20 years.
If you have decided to go with regular SIPs, then below are some guides you must read:
SIP Plans for INR 10,000 Per Month
SIP Plans For 1 Year
SIP Plan for Long Term Investment
SIP Plan For 20 years
Key Features of AMC SIP
Direct Access to Real-Time Data
With AMC SIPs, you get real-time access to your Net Asset Value (NAV). No waiting for broker updates or second-hand information.
You can track your portfolio performance, check daily NAV movements, and monitor your investments directly from the source.
Lower Expense Ratios
This is the biggest advantage. AMC SIPs typically have expense ratios 0.5-1% lower than regular plans.
For example, if a regular plan charges 2% and the direct plan charges 1.2%, you save 0.8% annually. Over 20 years, this difference can create substantial wealth.
Enhanced Control and Flexibility
Want to change your SIP date? Increase the amount? Or pause temporarily? With AMC SIPs, you can make these changes directly without going through intermediaries.
Most AMCs now offer mobile apps that make managing your SIPs as easy as using your banking app.
Professional Fund Management
Your money is still managed by the same expert fund managers. The only difference is you’re cutting out the middleman.
Fund managers at top AMCs like SBI, ICICI Prudential, and HDFC have decades of experience managing crores of investor money.
Benefits of AMC SIP Investment
Start Small, Dream Big
You can start an AMC SIP with as little as ₹500 per month. This makes wealth creation accessible to everyone, from fresh graduates to experienced professionals.
As your income grows, you can increase your SIP amount. Many AMCs offer step-up SIPs that automatically increase your investment by a fixed percentage each year.
Power of Compounding
Regular investments through AMC SIPs harness the power of compounding. Even small amounts invested consistently can grow into substantial wealth over time.
For example, investing ₹5,000 in AMC SIP monthly for 20 years at 12% annual returns can create a corpus of over ₹49 lakh. It may be higher than regular SIPs.
If you have 5000 to invest in regular SIPs, then check out this detailed guide about SIP Plans for Rs 5000 Per Month for 10 Years.
Tax Benefits Under Section 80C
ELSS (Equity Linked Savings Scheme) AMC SIPs offer tax deductions up to ₹1.5 lakh under Section 80C. This can save you up to ₹46,800 annually if you’re in the 30% tax bracket.
Unlike other tax-saving instruments, ELSS has only a 3-year lock-in period, making it more flexible than PPF or NSC.
Rupee Cost Averaging
AMC SIPs automatically buy more units when prices are low and fewer units when prices are high. This averages out your purchase cost over time.
This is especially valuable during volatile markets. While others panic about market ups and downs, your SIP keeps investing systematically.
Latest AMC SIP Trends
Record-Breaking Growth
AMFI data shows SIP assets have grown to ₹15.18 lakh crore in August 2025, representing 20.2% of the total mutual fund industry. This shows the increasing popularity of systematic investing.
New SIP account registrations hit 68.69 lakh in July 2025, indicating fresh investor interest despite market volatility.
Digital-First Approach
Most AMCs have upgraded their digital platforms. Features like AI-driven portfolio recommendations, instant KYC, and mobile-first interfaces are now standard.
You can complete your entire investment journey from KYC to SIP setup within minutes using available mobile apps for SIP.
Regulatory Changes
SEBI’s 2025 regulations have made AMC SIPs more transparent and investor-friendly. AMCs must now deploy NFO funds within 30 days and provide stress testing reports.
These changes ensure better protection for your investments and more accountability from fund houses.
How to Start AMC SIP?
Step 1: Choose Your AMC
Research different AMCs based on their fund performance, track record, and digital platforms. Top performers include SBI Mutual Fund, ICICI Prudential, HDFC AMC, and Axis AMC.
Look at their website, mobile app quality, and customer service ratings. You’ll be dealing with them directly, so user experience matters.
Step 2: Complete KYC
Majority of the AMCs provide an instant KYC through Aadhaar and PAN. You can do this online in just a few minutes. A few AMCs also offer e-KYC facility through video calls, which is even more convenient.
Step 3: Select Your Fund
Choose funds based on your goals, risk tolerance, and investment horizon. Equity funds are great for long-term wealth creation, while debt funds offer stability.
For tax saving, consider ELSS funds. For diversification, multi-cap or flexi-cap funds work well.
Step 4: Set Up Auto-Debit
Link your bank account for monthly automatic deductions. Almost all banks have facility for NACH (National Automated Clearing House) which takes off problem of transaction.
Choose an SIP amount that will not cause a strain on your monthly budget.
Step 5: Monitor and Review
Review your portfolio quarterly. While SIPs are meant for long-term investment, periodic reviews help ensure you’re on track with your goals.
Don’t stop SIPs during market downturns. These are actually the best times to accumulate more units at lower prices.
Best AMC SIP Funds
Based on recent performance and fund manager expertise, here are some top options:
For Long-Term Wealth Creation:
- SBI Contra Fund: Proven track record with contrarian investment approach
- ICICI Prudential Infrastructure Fund: 33% annual returns over 12 years
- HDFC Focused 30 Fund: Concentrated portfolio of quality stocks
For Tax Saving:
- Axis Long Term Equity Fund: Consistent ELSS performer
- DSP Tax Saver Fund: Strong risk-adjusted returns
- Mirae Asset Tax Saver Fund: Good for aggressive investors
For Conservative Investors:
- SBI Magnum Gilt Fund: Government securities focus
- ICICI Prudential Balanced Advantage Fund: Dynamic asset allocation
- HDFC Hybrid Equity Fund: Balanced risk-return profile
Common AMC SIP Mistakes to Avoid
Starting Too Late
The earlier you start, the more time your money has to compound. Starting at 25 versus 35 can mean a difference of crores in your final corpus.
Don’t wait for the “perfect” time. Market timing doesn’t work, but time in the market does.
Stopping During Market Downturns
Many investors panic and stop SIPs when markets fall. This is exactly the wrong thing to do.
Market corrections are when you accumulate the most units for your money. History shows that consistent investors always come out ahead.
Choosing Based on Recent Performance
Past performance doesn’t guarantee future results. Instead of chasing last year’s winners, focus on fund managers with consistent long-term track records.
Look at how funds performed during different market cycles, not just bull markets.
Ignoring Expense Ratios
A seemingly small difference in expense ratios can cost you lakhs over time. Always compare expense ratios before choosing between similar funds.
Direct plans (AMC SIPs) almost always have lower expense ratios than regular plans.
FAQs about Asset Management Company (AMC) SIP
AMC SIPs set directly with the fund house usually cannot be paused or edited; they must be cancelled and re-registered before the next instalment cut-off. Platform-created SIPs may allow pause or changes, but AMC SIPs often don’t. Check the AMC’s rules before creating one.
Units are allotted at the applicable NAV as per SEBI cut-off rules and the scheme’s SID. If the SIP date is a market holiday, processing shifts per the fund’s stated policy for the next business day NAV eligibility.
No Demat is required for mutual fund SIPs. A bank account and KYC compliance are enough to invest directly with the AMC via their website or app.
PAN, Aadhaar, bank details, and mandate authorisation are required documents. Some AMCs may require a live selfie or video KYC. Keep a cancelled cheque or passbook handy for mandate setup.
The minimum SIP amount is set by each AMC and scheme. It commonly starts from ₹500 or ₹1,000, but limits vary by fund category and house. Check the scheme page before creating the SIP.
Submit a cancel request at least two working days before the next instalment date to stop the upcoming debit. Some platforms reflect instant submit, but AMCs enforce the 2-day operational window.
Conclusion
AMC SIPs offer a smart way to build wealth while keeping costs low. With SIP assets growing by 13.4% annually, more investors are discovering their benefits.
However, they require more involvement from your side compared to regular SIPs with advisory support.
Start with small amounts, stay consistent, and let compounding work its magic. Whether you’re saving for retirement, your child’s education, or any other goal, AMC SIPs can help you get there faster and more efficiently. Ready to start your AMC SIP investment? Choose a reputable AMC, complete your KYC, and begin your wealth creation with as little as ₹500 per month.
Team LenDenClub
LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.