How to add multiple bank details to your existing folio?
Managing your mutual fund investments wisely is crucial for financial prosperity. A fairly common question among new investors is – “can we add two accounts in one mutual fund portfolio?” The simple answer to this query is – Yes. Adding multiple bank accounts to your existing folio provides the convenience and flexibility to optimise your mutual fund experience.
This article will help you understand the benefits of adding multiple bank accounts, the steps involved, and answer some common questions.
- Table of contents
How to add another bank account in a mutual fund portfolio: A step-by-step guide
Choose the AMC (Asset Management Company): Each AMC has its own process for adding bank accounts. Locate your AMC's website or visit their nearest branch for specific instructions.
Download the form: Look for the ‘Multiple Bank Account Registration Form’ or similar documents on the AMC website. Download and print the form.
Fill in the details: Accurately complete the form with your folio number, PAN number, bank account details (account number, IFSC code), and signature.
Attach documents: Depending on the AMC, you may need to provide a cancelled cheque from each new bank account and a self-attested copy of a government-issued ID proof.
Confirm the addition: Review the entered information and confirm the addition of the new bank account to your mutual fund folio.
Submit the form: Submit the completed form and documents to the AMC either in person at a branch or through email (check the AMC's website for preferred delivery methods).
Verification and processing: The AMC will verify your details and process your request. Expect confirmation within 7-10 working days.
Why add multiple bank accounts?
Streamlining your investment portfolio is a crucial aspect of achieving your financial goals. For mutual funds investors, the ability to add multiple bank details to an existing folio offers enhanced flexibility and convenience.
- Convenience in transactions: Imagine seamlessly choosing the most convenient account for each transaction, depending on funds availability. With multiple accounts linked, you're not restricted to just one source.
- Flexibility: Diversify your financial flow – allocate income from different jobs or accounts to specific mutual funds, enabling targeted investments for various goals.
- Enhanced liquidity management: Adding multiple bank accounts allows you to manage your liquidity more efficiently. You can allocate specific funds to different accounts based on your financial goals, such as emergency savings, short-term expenses, or long-term investments.
- Streamlined budgeting: Separate accounts for different purposes, like recurring investments or occasional top-ups, can enhance budget control and financial awareness.
- Faster transactions: Certain banks may offer quicker processing times for mutual funds transactions. Having options allows you to leverage the efficiency of your preferred bank for each investment.
- Risk mitigation: Diversifying your linked bank accounts adds a layer of risk mitigation. In case one bank faces technical issues or other challenges, you can still execute transactions through an alternative account.
- Peace of mind: In case of unforeseen circumstances, like a lost or blocked account, you can still invest or redeem units without disruption, thanks to having backup options.
Conclusion
Keep your contact information and email address updated with your AMC to ensure timely communication regarding your folio and any changes in bank account details. On changes in bank account, investor needs to be aware to submit proper documents and there is no fraud happening in the account owing to change in bank account. In conclusion, adding multiple bank accounts to your mutual funds folio is a simple yet powerful way to streamline your investment experience. By taking advantage of this flexibility, you can optimise your financial management and create a seamless path towards your investment goals. So, why wait? Diversify your finances and enjoy the convenience of multiple bank accounts in your mutual funds folio today!
FAQs:
Is there a limit to the number of bank accounts I can add to my mutual funds portfolio?
The limit on the number of linked bank accounts can vary among fund houses. Generally, investors can add multiple accounts, but it's advisable to check the specific policies of your chosen fund house. For non-individuals, corporate can add up to 10 banks and for Individuals, investor can add up to 5 banks
Can I choose a default account for transactions?
Yes, in case of multiple banks, it is mandatory to mention the default bank. Most AMCs allow you to set a preferred bank account for automatic investments or redemptions. You can usually change this default through the AMC's online portal or by submitting another form.
Are there any fees for adding multiple bank accounts?
Generally, no additional fees are levied for registering multiple bank accounts. However, certain transactions like redemptions may incur standard charges depending on your investment plan and AMC.
How long does it take for a new bank account to be linked to my mutual funds folio?
The processing time for adding a new bank account to your mutual funds folio can vary. In most cases, it takes a few business days. Ensure that you initiate the process well in advance if you plan to use the new account for time-sensitive transactions.
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.