Yes, you can invest a fixed amount in UCITS ETFs every month from India, much like a mutual fund SIP. The cost to watch is not the fund or the brokerage. It is the fixed fee some banks charge every time you send money abroad, which can take a large bite out of a small monthly amount.
If you plan to invest ₹10,000 to ₹20,000 a month, how you send the money matters more than which fund you pick. This guide shows how a monthly SIP works on Paasa, what the major banks charge for each remittance, and how to keep those charges low.
Table of contents
How a monthly SIP works on Paasa
A UCITS ETF SIP has two steps each month: send money abroad, then buy the fund.
- Open your Paasa account and complete KYC online. There is no minimum balance and no monthly platform fee on the Access plan. See What Paasa Charges Over IBKR.
- Send money under LRS. Paasa pre-fills the LRS paperwork for each remittance.
- Buy your UCITS ETF. You can buy fractional units, so you can invest the exact amount you sent rather than rounding to whole units. See How to Buy UCITS ETFs from India.
- Repeat each month, or less often if you batch your remittances .
If you have not picked a fund yet, see Top UCITS ETFs for Indian Investors.
What banks charge to send money abroad
Each remittance can carry up to four costs:
- The bank's transaction fee. A fixed amount per remittance, plus 18% GST.
- GST on currency conversion. Charged on a small notional value of the amount converted, not on the full amount.
- The exchange rate margin. The gap between the rate you get and the market rate. Banks rarely publish it.
- Intermediary bank charges. Fees taken by banks that pass the payment along. These vary and are usually not published in advance.
Lump sum or SIP
If you already have a sum ready to invest, putting it in at once means fewer remittances and lower fees. A monthly SIP suits money that comes from your salary each month, and it spreads your buying across different market prices. See Dollar-Cost Averaging.
You can also combine the two: invest what you have now in one remittance, then add a fixed amount each month or quarter.
About Paasa
Paasa is a global investing platform for Indian residents and NRIs.
- Built for regular investing: No minimum balance, no monthly platform fee on the Access plan, and fractional UCITS ETF units, so small monthly amounts work.
- Simpler remittances: LRS paperwork is pre-filled for each remittance, with preferential FX rates on USD conversion.
- An account in your own name: Your holdings sit in an account in your name, with Interactive Brokers as custodian.
