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Micro SIP (investment in mutual funds without providing Pan details)

Micro SIP is an investment through Systematic Investment Plan (SIP) upto Rs. 50,000/- (for rolling 12 months or FY April to March), where the investor is exempted from the need for Permanent Account Number (PAN)

Applicability of Micro SIP
The exemption is applicable only to systematic investments by individuals (including NRIs but excluding PIOs), Minors and Sole proprietary firms. The exemption is not applicable to normal purchase/ switch transactions.

The SIP for rolling 12 months or FY April to March should not exceed Rs. 50,000 through this application or any existing SIP in the schemes.

Documents required to be submitted by Investors (including joint holders) along with Micro SIP application as proof of identification in lieu of PAN. The investor can submit any one document from the mentioned list.

• Voter Identity Card
• Driving License
• Government/ Defense identification card
• Passport
• Photo Ration Card
• Photo Debit Card (credit cards not allowed)
• Employee ID cards issued by companies registered with Registrar of Companies
• Photo Identification issued by Bank Managers of Scheduled Commercial Banks / Gazetted Officer / Elected Representatives to the Legislative Assembly / Parliament
• ID card issued to employees of Scheduled Commercial / State / District Co-operative Banks
• Senior Citizen / Freedom Fighter ID card issued by Government
• Cards issued by Universities / deemed Universities or institutes under statutes like ICAI, ICWA, ICSI
• Permanent Retirement Account No (PRAN) card issued to New Pension System (NPS) subscribers by Central Recordkeeping Agency (NSDL)
• Any other photo ID card issued by Central Government / State Governments / Municipal authorities / Government organizations like ESIC / EPFO

The Photo Identification document has to be current and valid and also has to be self attested and attested by an ARN holder

Guidelines related to Micro SIP 

Pursuant to SEBI letter No. MRD/DoP/PAN/PM/166999/2009 dated June 19, 2009 addressed to AMFI and in compliance with AMFI Guidelines dated July 14, 2009, investment in micro financial products such as Systematic Investment Plans (SIPs) where aggregate of installments in a rolling 12 months period or in a financial year i.e. April to March does not exceed Rs. 50,000 per year per investor (hereinafter referred as "Micro SIPs"), will be exempt from the requirement of Permanent Account Number (PAN) with effect from August 1, 2009. This exemption will be applicable only to investments by individuals (including Joint Holders who are individuals, NRIs but not PIOs), Minors and Sole proprietary firms. HUFs and other categories will not be eligible for this exemption.
Investors may please note that Micro SIPs are offered under all the Schemes of Mutual Fund where SIP facility is available subject to submission of any one of the necessary Photo Identification documents (being current and valid) along with Micro SIP Enrolment Form as a proof of identification in lieu of PAN. The list of acceptable Photo Identification documents is given in the Micro SIP Enrolment Form.
Investors who wish to enroll for Micro SIP are required to fill in the Micro SIP Enrolment Form available with the ISCs, distributors/agents and Investors are advised to read the terms and conditions carefully before enrolment.


  1. Micro SIP has been launched to offer long-term investment benefits in equity to low income households residing in the rural and semi-urban areas.

  2. Yes, that's right and this not only ensures that a small investor with Rs 50/ Rs 100 a month can invest in mutual funds, it also gives her/ him a chance to increase the number of months/ years over which she/ he can invest in equity.
    Micro SIP aims at getting in low income households in rural and semi-urban areas to benefit from the long-term investment in Equity as an asset class.


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