What does mean the initial investment(i.e min Rs.5000) in mutual funds.?

i want to invest Rs.1000 per month in SIP mutual fund but every mutual fund have min initial investment Rs.5000. will i have to pay Rs.5000 initially and only then i can proceed.?

Minimum investments of Rs. 5000 is only for Lumpsum deposits and not for SIPs. You can start SIP with an initial deposit of Rs. 500 - 1000.

please explain this.

That’s right. When you are starting a SIP each fund will have minimum initial investment for the first time and you can invest Rs 1000 each month thereafter.

The reason for the minimum amount is because the SIPs on Coin are actually simulated SIP. We essentially do a lumpsum investment at regular intervals. This gives us the flexibility to allow you to set rules like start/stop whenver you want, hit pause, edit SIP amounts, etc etc. Not possible in traditional SIP.

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This is the SIP order screen. You will have to make an initial investment of SIP of Rs 5000 and the subsequent SIP instalments can be as low a Rs.1000. When setting up a SIp you need to select the frequency of your SIP instalment, you can set it weekly, every 15 days, monthly or quarterly.

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So my SIP is actually a lumpsum investment at AMC side, which is managed by Zerodha? or is it just for first month?