Benefits of a One Time Mandate (OTM) in SIP

Investing through Systematic Investment Plans (SIPs) has become one of the most popular ways to build wealth. It promotes disciplined investing and helps individuals meet their long-term financial goals. With the advancement of digital processes, managing SIPs has become even more convenient. One such feature enabling this convenience is the One-Time Mandate (OTM).

What is OTM?

A One-Time Mandate (OTM) in SIP is an instruction you give to your bank just once, allowing your mutual fund house to auto-debit the money from your account regularly for all your SIPS. Think of it as giving the fund house “standing permission” to withdraw a specific limit of money, so you don’t need to approve payments every time you invest manually.

Once you successfully register for OTM, the money transfer will be automated, so you won’t have to worry about transferring money periodically.

Why should you choose OTM?

As the term suggests, it’s a one-time task. You just need to link your preferred bank account once. After that, no repeated approvals are required for each SIP transaction.

The mandate instructs your bank to deduct the SIP amount on schedule and route it directly to your selected mutual fund scheme.

The One-Time Mandate is considered safer and more reliable, especially compared to other online payment modes that may fail due to technical errors or banking delays.

You can register multiple SIPS under a single mandate. Ensure that the total SIP amount stays within the limit specified in the OTM.

Once activated, your SIPS will run automatically each month. This helps you build a disciplined investment habit without repeatedly initiating payments manually.

What transactions can be done through the OTM facility?

Systematic Investment Plans (SIPS)

OTM ensures your SIP investments happen on schedule. Once set, your bank auto-debits the chosen amount monthly, helping you invest consistently and effortlessly.

Lump Sum Purchases

Planning a one-time investment? OTM allows smooth lump sum investments without repetitive bank logins or payment details. Your mutual fund purchases become quick and hassle-free.

Additional Top-ups

Want to invest extra during favourable market conditions? With OTM, adding more funds to your existing investments is straightforward. You simply request the additional investment, and the mandate handles the rest.

How to register for the OTM facility?

To register for the One-Time Mandate (OTM) online, visit your AMC’s website or investment app and initiate the e-mandate process. You can quickly set up the mandate within minutes using your UPI ID or debit card credentials, eliminating paperwork.

Ensure you accurately provide details, such as your bank account number, UPI ID or debit card information, maximum transaction limit, and contact information. Verify all details before submission, as incorrect information can cause delays or rejection.

After successful authentication, your OTM becomes active immediately or within a short verification period. This seamless online process makes your future SIP and lump sum investments quick and hassle-free.