Benefits of One - Time Mandate For SIP Investment

What is OTM for SIP?

One Time Mandate (OTM) for SIP (Systematic Investment Plan) investments is a facility provided by financial institutions or mutual fund companies that allows you to set up an automatic debit mandate for your SIP investments. You can use an SIP Calculator to figure out the amount you want to set up for automatic debit.

With an OTM, you authorize your bank or financial institution to debit a predetermined amount from your bank account at specified intervals (usually monthly) and invest that amount in a selected market-linked fund scheme through best SIP plans. This eliminates the need for manual payments for each SIP instalment, making the investment process more convenient and hassle-free for you.

SIP Calculator

I know my investment amount I know my goal amount

Monthly SIP Yearly SIP Lumpsum

I want to invest Pro Tip

Financial experts suggest that a person should invest 10-15% of their monthly income for long-term financial growth

/Month

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

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Total Wealth ₹22.4 L

View Plans

I want to save

I want to invest for Pro Tip

Financial experts suggest that individuals should ideally invest for a period of 5 to 10 years, or even longer, to maximize the benefits of compounding and navigate market fluctuations effectively

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Expected return Pro Tip

Top 25% of investors consistently generate more than 12% return

% Annually

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Monthly Investment ₹22.4 L

View Plans

Top Funds with High Returns (Past 7 Years)

19.3%

High Growth Fund

15.61%

Accelerator Mid-Cap Fund II

15.48%

Opportunities Fund

What are the Benefits of OTM in SIP?

OTM (One Time Mandate) in SIP offers several benefits that can make your investment journey smoother and more disciplined: 

• Convenience: OTM automates the payment process, saving you the hassle of manually transferring funds for each SIP instalment.

• Time and Effort Saving: Once OTM is set up, it relieves you from arranging subsequent payments. It allows you to focus on other tasks.

• Discipline: It helps in maintaining investment discipline by ensuring regular contributions to SIP without the need for constant monitoring.

• Timeliness: OTM ensures timely payments, reducing the risk of missing SIP instalments and helping you stay on track with your investment goals.

• Cost-Effectiveness: By automating the payment process, OTM reduces the likelihood of incurring penalties or charges for missed payments.

• Flexibility: Investors can easily modify or cancel their OTM instructions as per their changing investment needs and financial situations.

How OTM in SIP Works?

• Use an SIP calculator to estimate your investment amount, tenure, and expected return based on your financial goals.

• Choose the best SIP plan for your SIP investment.

• Set up an OTM with your bank for the SIP amount and desired investment frequency (monthly, quarterly, etc.). This ensures automatic deduction and investment.

Steps to Automate Your SIP Plans

OTM (One Time Mandate) automates payments in the SIP Plans. It ensures timely investments without manual intervention. You can set up OTM in SIP through the following two popular methods:

Method 1: Online Banking

Step 1- Login: Access your net banking portal using your credentials.

Step 2- Locate SIP options: Look for sections like "Bill Pay," "Auto-Pay," or "Standing Instructions." These options might be under "Payments" or "Investments."

Step 3- Set up SIP: Choose "Market-Linked Investment Funds" or "SIP" as the payment category.

Step 4- Fill in details: Provide your fund provider's details, SIP folio number, desired SIP amount, and start date.

Step 5- Link bank account: Select the savings account from which you want the SIP to be deducted. You might need to enter your bank account details if not already linked.

Step 6- Activate OTM: Confirm and activate the OTM registration following on-screen instructions. The bank will verify the mandate with your chosen account.

Method 2: Offline Form

Step 1- Download the form: Get the OTM form from your fund provider's website or collect it from a branch.

Step 2- Fill out the details:

• Enter your bank account details (account number, IFSC code).

• Mention the SIP folio number or application number.

• Specify the SIP amount and preferred start date.

• Choose the OTM validity (usually "until cancelled").

• Sign the form, ensuring it matches your signature on record with the bank.

Step 3- Submit the form: Submit the completed OTM form in person at:

• Your bank branch.

• Your market-linked fund provider's office.

In Conclusion

The One Time Mandate for SIP offers a streamlined and convenient approach to investing, providing benefits such as hassle-free transactions, reduced paperwork, and enhanced efficiency. OTM promotes disciplined saving and ensures consistent investment by enabling automatic deductions. Ultimately, it empowers you to achieve your financial goals with ease.