How to Start SIP Using E-mandate?

3 mins read
by Angel One
Invest smarter, not harder! Start SIP with e-mandate for a hassle-free process, and keep an eye on your hard-earned money.

Introduction

Systematic Investment Plan (SIP) has gained popularity among investors as a method to accumulate wealth steadily through disciplined and regular investments. However, managing SIP payments manually can be cumbersome and may lead to delays or missed payments. To address this issue, many financial institutions now offer the option to start SIPs using e-mandate, streamlining the investment process and ensuring timely contributions. In this article, we’ll explore the process of initiating a SIP using e-mandate, empowering you to manage your investments effortlessly.

  1. Choosing the Right Mutual Fund: The first step in starting a Systematic Investment Plan (SIP) using e-mandate is to select a mutual fund scheme that suits your investment objectives, risk appetite, and time horizon. Conduct thorough research and analysis to identify funds with strong track records, consistent performance, and alignment with your financial goals.
  2. Determining SIP Amount and Frequency: Once you’ve chosen a mutual fund scheme, decide on the amount you wish to invest periodically through SIPs and the frequency of payments. Consider factors such as your income, expenses, and financial commitments to determine a suitable SIP amount and frequency that you can comfortably sustain over the long term.
  3. Setting Up E-Mandate Authorization: Contact your bank or financial institution to initiate the process of setting up an e-mandate authorisation for SIP payments. This involves granting permission to the mutual fund company to automatically debit your bank account for SIP instalments on predefined dates. Provide the necessary details and documentation required to establish the e-mandate securely.
  4. Ensuring KYC Compliance: Before initiating SIPs, ensure that your Know Your Customer (KYC) documentation is up-to-date and compliant with regulatory requirements. Most mutual fund companies mandate KYC verification for investors as part of the onboarding process to prevent fraudulent activities and ensure regulatory compliance.
  5. Submitting SIP Registration Form: Fill out the SIP registration form provided by the mutual fund company, accurately specifying details such as your chosen SIP amount, frequency, bank account information, and e-mandate authorisation details. Review the form carefully to avoid errors or discrepancies that could delay the activation of your SIP.
  6. Confirmation and Activation: Once you’ve submitted the SIP registration form and the e-mandate authorisation is successfully set up, the mutual fund company will verify the information provided and activate your SIP. You may receive confirmation of the SIP registration via email, SMS, or physical mail, along with details of your SIP schedule and payment dates.

Advantages of SIP with E-Mandate:

Convenience: E-mandate eliminates the need for manual payments, ensuring hassle-free and automated SIP contributions.

Timely Investments: With e-mandate, SIP payments are debited from your bank account on the scheduled date, reducing the risk of missed payments or delays.

Cost-Effectiveness: SIP with e-mandate incurs minimal transaction costs, making it a cost-effective investment strategy.

Flexibility: Investors have the flexibility to modify or cancel SIPs as per their changing financial needs and circumstances.

Conclusion:

Starting a SIP using e-mandate simplifies the investment process, providing convenience, timeliness, and cost-effectiveness. By automating SIP payments, investors can maintain discipline in their investment approach, moving closer to their financial objectives effortlessly. Embrace the convenience of e-mandate to embark on a journey of systematic and rewarding investing.

Ready to watch your savings grow? Try our SIP Calculator today and unlock the potential of disciplined investing. Perfect for planning your financial future. Start now!

Disclaimer:  This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.