Systematic Investment Plans (SIPs) in mutual funds streamline your investment process. You need to choose a suitable mutual fund, the amount you want to invest and opt for the SIP option. The amount automatically gets debited from your bank account every month on a fixed date, and you receive the mutual fund units in your account. Easy, right?
This automatic deduction is possible because of the One Time Mandate (OTM) in the SIP mode of investing.
What is OTM in mutual funds?
OTM in mutual funds or OTM in SIP refers to the one-time registration process to enable your SIP investments automatically. To allow the auto-deduction of the SIP amount every month from your savings account, you need to register an OTM with the bank.
OTM allows your SIPs to become automated so that you don’t have to transfer the required amount each month manually. OTM in SIP helps ensure you don’t miss out on your investment payments and stick to your goals. Let’s look at the benefits of a one-time mandate in mutual funds.
Benefits of opting for OTM in mutual funds
OTM in mutual funds has clear benefits for investors. A few are discussed below:
How to register OTM in mutual funds?
You can easily register a one-time mandate in your preferred mutual fund SIP online through net banking or by entering your debit card details. Log on to the website of the mutual fund house or any investment platform to start investing.
Investing in mutual funds through SIPs is popular due to the several benefits. Investment automation is a major benefit as it helps inculcate the habit of financial discipline and sticking to your investment strategy. You can opt for it with the one-time mandate option.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
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