How one-time-mandate helps streamline your mutual fund transactions?

OTM in a mutual fund
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Investing in mutual funds is gaining immense popularity as a way of potentially growing one’s wealth. However, dealing with multiple transactions and the related processes can put off many new investors. This is where a One-Time Mandate (OTM) comes into play, offering investors a smoother and more efficient mutual fund experience.

Let us check out how OTM helps in mutual fund investment and the benefit of OTM in mutual fund transaction. In this article, we'll explore what a One-Time Mandate is, the benefits it offers to mutual fund investors, how to register for it, and how it simplifies the entire investment process.

  • Table of contents
  1. What is a one-time mandate in mutual fund transactions?
  2. Benefits of one-time mandate for mutual fund investors
  3. How can an investor register for OTM?
  4. FAQ

What is a one-time mandate in mutual fund transactions?

Traditionally, investors had to go through the process of submitting multiple forms or giving repeated online instructions for every investment or redemption. With a One-Time Mandate, investors can authorise a single instruction covering multiple transactions. It's like permitting your bank to seamlessly process your mutual fund transactions without the need for repetitive approvals. In simpler terms, it's a one-time permission slip that makes your financial life a whole lot easier.

Here's how OTM help in mutual fund transaction. With a One-Time Mandate, you authorise your bank to automatically debit or credit your linked account for mutual fund transactions, eliminating the need for manual intervention each time you make an investment or redeem your funds. This streamlines the entire investment/redemption process, saving you time and ensuring your transactions are executed promptly.

Benefits of one-time mandate for mutual fund investors

Convenience: The primary benefit of an OTM in a mutual fund is convenience. Once authorised, you won't have to go through the hassle of approving each transaction individually. It's like setting up autopilot for your mutual fund investments.

Timesaving: No more filling out forms or approving transactions online repeatedly. An OTM in a mutual fund simplifies the process, allowing you to invest or redeem funds with just a few clicks.

Reduced paperwork: Say goodbye to mountains of paperwork. With an OTM in a mutual fund, you minimise the need for physical documentation, making your financial life more eco-friendly and less cluttered.

Faster execution: Transactions are processed more swiftly with a One-Time Mandate. This ensures that your investment decisions are implemented without unnecessary delays.

Flexibility: Enjoy the flexibility of managing your mutual fund transactions effortlessly. Whether it's a lumpsum investment, SIP (Systematic Investment Plan), or redemption, an OTM in a mutual fund covers it all.

How can an investor register for OTM?

Registering for an OTM in a mutual fund is an easy process. Here's a step-by-step guide:

Contact your bank: Get in touch with your bank and inquire about the process for registering a One-Time Mandate for mutual fund transactions.

Fill out the mandate form: Your bank will provide a mandate form. Fill in the required details accurately. This typically includes your bank account information, mutual fund folio details, and the type of transactions you want to authorise.

Submit the form: Once the form is filled, submit it to your bank. They may verify the details before processing the mandate.

Receive confirmation: After verification, you'll receive confirmation that your One-Time Mandate is active. From this point forward, your mutual fund transactions will be executed seamlessly. Remember, the process might vary slightly depending on the bank and mutual fund house, so it's always a good idea to check with both to ensure a smooth registration.

Conclusion

Managing your mutual fund transactions becomes incredibly easy with a One-Time Mandate. It's like having a helpful assistant that does the job for you, saving you time, cutting down on paperwork, and offering the convenience you need. If you haven't tried One-Time Mandates yet, now could be the right moment to discover a more efficient and stress-free way of handling your mutual fund investments.

FAQs:

What is a one-time mandate in mutual fund transactions?
A. One-Time Mandate in mutual fund transactions is a one-time authorisation given by an investor to their bank, allowing seamless processing of mutual fund transactions without the need for repeated approvals. It simplifies the investment process by eliminating the need for manual intervention for each transaction.

How is a one-time mandate executed in mutual funds?
Once an investor registers for a One-Time Mandate, the bank is authorised to automatically debit or credit the investor's account for mutual fund transactions. This eliminates the need for the investor to approve each transaction, streamlining the entire process.

What is the difference between a one-time mandate and regular mutual fund transactions?
In regular mutual fund transactions, investors typically need to approve each transaction manually, either through physical forms or online platforms. A One-Time Mandate, on the other hand, authorises the bank to process mutual fund transactions seamlessly without the need for individual approvals for each transaction.

Is a one-time mandate available for all types of mutual funds?
Yes, a One-Time Mandate is generally available for various types of mutual funds, including lumpsum investments, SIPs (Systematic Investment Plans), and redemptions. However, it's advisable to check with your bank and mutual fund house to confirm the specific options available for your investment needs.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.