Investing in mutual funds has now become hassle free, conducive, paperless and user friendly. All thanks to One Time Mandate (OTM) facility. Simply stated, it is the consent to your bank account to debit a certain amount of money in a day to mutual funds of your portfolio. This provision can be exercised whenever you deal in mutual funds.
Let’s say for example you have opted for the Aditya Birla Sun Life Mutual Fund and registered for the OTM. Once done, whenever you wish to transact again, you can do so without having to initiate any payment from your end. Yes, just like that!
Here are few Benefits of registering One Time Mandate:
- It is a one - time registration process
- Invest through any mode (Physical/SMS/AMC Website) via SIP or Lump sum purchases with a single mandate
- Invest without a Cheque/DD/Online funds transfer
- Register SIPs in 5 days for OTM registered investors.
- Allows to register for SIP in more than one scheme at a time
The process is very simple:
- Register for OTM with desired mutual fund distributor and fund house
- Enter your portfolio details
- Enroll the maximum amount &time period for the OTM
- The distributor will ensure that your OTM is submitted with the fund house for further action
The registration can also be initiated via Aadhaar Card based OTP validation. It is an online procedure where the investor’s details will be pre filled and the investor needs to modify the amount of payment to be initiated on a daily basis for his portfolio. Nearly 20 banks are tied up with this facility allowing the investors to access this benefit.
Once the registration process is completed with the relevant bank, you can seamlessly transact online. The hassles of affixing a cheque or setting a payment through a payment gateway, net banking, debit card procedures etc. are obviated. The mandate can be ruled for a fixed period of time or can be terminated any time.
OTM enhances the effectiveness of your mutual funds investments in all cases; whether you wish to quickly park your excess money in liquid funds or wish to start multiple SIPs in equity funds, all can be done with a single mandate!
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.