A complete step-by-step guide to setting up automated monthly SIP investing with zero broker visits and zero recurring effort.
Online Systematic Investment Plan (SIP) in Nepal is a fully automated wealth-building mechanism where an investor authorizes a recurring monthly debit from their bank account via connectIPS to purchase units of an open-ended mutual fund scheme at prevailing NAV. The process is completely paperless and bypasses secondary market stock brokers entirely.
Most people fail at investing because of two friction points: emotional hesitation ("is NEPSE going to drop tomorrow?") and operational laziness ("I forgot to transfer money this month"). Automated SIP solves both. By auto-debiting NPR 5,000 on the 2nd of each month right after salary day, you practice rupee-cost averaging - automatically buying more units when NEPSE is down and fewer units when it is up.
Ensure you have your 16-digit Demat BOID from your bank/broker and an active connectIPS username linked to your primary salary savings account.
Visit the open-ended portal of your chosen merchant bank (e.g., NIBL Ace Capital, Siddhartha Capital, NMB Capital, Sanima Capital). Click "SIP Registration" and input your BOID and personal KYC details.
Set your monthly installment (minimum NPR 1,000), choose an installment date (e.g., 5th of every Nepali month), set tenure (e.g., 5, 10, or 20 years), and tick the checkbox for DREP (Dividend Reinvestment).
Authenticate with connectIPS. Choose "e-Mandate / Recurring Payment Authorization". Verify with OTP. Your bank account is now linked for automatic hands-off monthly wealth creation!
| Year Completed | Total Out-of-Pocket Invested | Estimated Portfolio Value (13% CAGR) | Wealth Created (Gains) |
|---|---|---|---|
| End of Year 1 | NPR 60,000 | NPR 64,400 | +NPR 4,400 (Habit established) |
| End of Year 2 | NPR 1,20,000 | NPR 1,37,200 | +NPR 17,200 |
| End of Year 3 | NPR 1,80,000 | NPR 2,20,500 | +NPR 40,500 (Compounding kicks in) |
| End of Year 5 | NPR 3,00,000 | NPR 4,20,700 | +NPR 1,20,700 pure profit |
| End of Year 10 | NPR 6,00,000 | NPR 12,32,000 | +NPR 6,32,000 (More than double!) |
Digital financial infrastructure in Nepal transformed in recent years thanks to Nepal Clearing House Limited (NCHL). Prior to connectIPS e-Mandate integration, retail investors had to physically visit merchant bank offices in Naxal or Thapathali to deposit bank cheques each month. Today, all open-ended funds approved by SEBON integrate directly with connectIPS e-Mandate, enabling true friction-free salary deductions for citizens across all 77 districts.
Manish wanted to invest in shares but had no time during working hours (11 AM-3 PM) to watch NEPSE TMS or contact brokers. His monthly savings sat idle in a 3.5% savings account.
Manish opened the NIBL Ace Capital online portal on his smartphone, registered for an SIP in NIBL Sahabhagita Fund with NPR 6,000/month, and authorized an e-Mandate via connectIPS for the 5th of each Nepali month. Now, 10% of his salary is invested like clockwork without touching TMS once.
Goal & Dilemma: Starting an NPR 3,000 monthly SIP in an open-ended mutual fund.
E.g., NPR 5,000 per month.
Annual expected return divided by 12 (e.g., 12% / 12 = 0.01).
Tenure in years × 12 (e.g., 10 years = 120 months).
P = NPR 5,000, Annual Return = 12% (r = 0.01), Tenure = 10 Years (n = 120). FV = 5,000 × [(1.01^120 - 1) / 0.01] × 1.01 = NPR 11,61,695. Total invested = NPR 6,00,000. Net gain = NPR 5,61,695!
Stopping SIP contributions whenever the NEPSE index enters a bear market.
Continue investing aggressively during market crashes to acquire maximum units at discounted NAV.
Forgetting to link connectIPS e-Mandate and relying on manual monthly transfers.
Set up automated e-Mandate so the debit occurs without relying on memory or willpower.
Skipping the DREP (Dividend Reinvestment) option during registration.
Always select DREP to automatically reinvest cash dividends into new units.
The automated connectIPS debit will simply fail for that month. Neither the bank nor the capital manager will cancel your SIP or charge a penalty; the debit will resume automatically the next month.
Yes. You can log in to the fund manager's online portal anytime to modify your monthly installment amount, pause the SIP temporarily, or cancel it without penalty.
Most open-ended mutual funds in Nepal permit starting an SIP with as little as NPR 1,000 per month, making it accessible to students and entry-level earners.
NCHL ConnectIPS charges a nominal transaction fee of NPR 2 to 8 per transaction depending on the slab, making automated monthly SIPs extremely cost-effective.
Yes. You can log into the respective merchant bank portal at any time and modify installment amounts, pause contributions, or cancel the SIP with zero cancellation fees.