Systematic Investment Plan Procedures

Systematic Investment Plan

Systematic investment Plan (SIP) is an investment route wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals – say such as once a month, once a quarter, weekly, fortnightly, or daily basis instead of making a lump-sum investment.

Ways in which SIP can be requested.

• SIP with new folio: This is normal SIP with investment application, first investment cheque and SIP will start from subsequent months.
• SIP with lumpsum: In this transaction, investment cheque of lumpsum amount and SIP amount can be different. First transaction will be shown as purchase and subsequent transactions will be SIP.
• SIP with zero balance folio: In this transaction, there will not be any investment cheque. Instead, cancel cheque copy or passbook copy, or any bank proof will be provided. SIP will start from opted SIP start date post SIP mandate registration, and units will be allotted accordingly.
• SIP in existing folio: This can be with cheque or without cheque, it can be in same scheme or in different scheme, in same ARN or in different ARN. However, SIP in existing scheme does not require investment cheque.

Types of SIPs

SIP can be done through different modes:

• SIP with cheque for initial purchase (lump-sum)
• SIP with NACH (valid for specific scheme for which NACH was created, it is specific amount for which NACH was registered, cannot be used for any other transaction)
• SIP with OTM (OTM is valid for all schemes, can be used until limit is reached, UMRN (Unique Mandate Reference Number) can be used for any other transactions and is at folio level)
• SIP with E-NACH through MF Utility or RTAs applications (payment services that allow those with bank accounts to automate their recurring payments easily)
• I-SIP through our MF Utility or RTAs applications (internet-based SIP is a completely paperless way of setting up an SIP)

Any date is allowed for monthly SIP. However, 29^th, 30^th,31^st cannot be opted as SIP date for monthly SIP.

One time bank mandate

• OTM can be used for multiple SIPs under a folio, it can also use for lumpsum purchase.
• Limit is applicable for per transaction and not per folio.
• KOTM (Kfintech OTM) can be used for SIP and purchase as well. This OTM is registered at RTA level and can be used for all schemes at PAN level.
• One folio can have one OTM only. Existing OTM will be replaced by new OTM in case the amount of new OTM is higher than existing one or the bank account is different of the new OTM submitted along with SIP.
• OTM gets registered at folio level. Investor can have different OTM in different folio/s.

For example, SIP is of Rs.10,000/- is active in one folio and another SIP along with mandate of Rs.5,000/- is submitted, then old mandate of Rs.10,000/- will be retained and SIP will be registered with existing OTM. In case the amount of new OTM is higher or there is change of bank or bank account then the existing OTM will get replaced with new one.

• If investor wants to do additional SIP in existing folio using existing mandate, then UMRN must he mentioned on SIP form. else, transaction will be subject to rejection.
• Signature in the OTM must be as per mode of holding in investor’s bank. Any kind of alteration/overwriting on the OTM is not allowed.

Multi goal SIP

• Can invest any two or three schemes.
• SIP Top up is allowed in any of the scheme.
• SIP start and end date will be same for all schemes.
• Can be done through offline mode only.
• Existing OTM can be used and if not, then new OTM form is mandatory. OTM limit must be the total of all the schemes or more.

Top-up Systematic Investment Plan (SIP)

• SIP Top-up is a facility wherein an investor who wishes to enrol for SIP, has an option to increase the amount of the SIP instalment by a fixed amount at pre-defined intervals i.e., half yearly and yearly. The SIP Top-up amount should be filled in the SIP Enrolment Form itself.
• The SIP Top-up amount should be in multiples of Rs.500/- only.
• The SIP Top-up option is only available for monthly SIP.
• In case the top-up frequency is not indicated under Monthly SIP, it will be considered as half yearly interval.
• SIP Top-up Facility is not available under Micro SIPs.

SIP Pause

• Investor can Pause SIP at any time, by filling in the SIP Pause form.
• The facility can be availed by investor only twice during the entire tenure of Monthly SIP facility.
• To avail the facility a valid application should be submitted to AMC/Kfintech at least 10 calendar days prior to the next monthly SIP instalment date (i.e., excluding the request date and the next SIP instalment date).
• Investor cannot cancel the facility once requested.
• The facility is only available under monthly SIP frequency for investors with instalment amounts equal to or greater than 1,000/-.
• The facility can only be availed by investors who have completed 6 valid SIP instalments.
• The SIP shall restart automatically from the immediate next eligible instalment after the completion of specified pause period.
• This facility is not available for the SIPs sourced/registered through MF Utilities India Pvt. (“MFUI”).
• Further, this facility is also not available for SIP registered by investors as Standing Instructions with their respective Banks.
• This facility is not available for investors availing Multi-Goal SIP, Combo SIP, and Retirement Plan.
• In case of multiple SIPs registered in a scheme, the facility will be made applicable only for those SIP instalments whose SIP date, frequency, amount, and Plan is specified clearly in the form. If requisite information is not clearly filled, all SIPs in the scheme will be accepted for pause.

SIP cancellation.

• Investor can request cancellation of an ongoing SIP by submitting SIP cancellation form.
• The cancellation of the facility should be submitted 30 days prior to the next SIP instalment date.

Do’s & Don’ts

• Investors who have already submitted a One Time Mandate (OTM) form or already registered for OTM facility should not submit OTM form again as OTM registration is a one-time process only for each bank account. However, such investors who wish to add a new bank account towards OTM facility may fill the form.
• Investors, who have not registered for OTM facility, may fill the OTM form and submit duly signed form with their name mentioned.
• Mobile Number and Email Id: Unit holder(s) should mandatorily provide their mobile number and email id on the mandate form. Where the mobile number and email id mentioned on the mandate form differs from the ones as already existing in the folio, the details provided on the mandate will be updated in the folio. All future communication whatsoever would be, thereafter sent to the updated mobile number and email id.
• Unit holder(s) need to provide along with the mandate form an original cancelled cheque (or a copy) with name and account number pre-printed of the bank account to be registered or bank account verification letter for registration of the mandate failing which registration may not be accepted. The Unit holder(s) cheque/bank account details are subject to third party verification.
• Investors are deemed to have read and understood the terms and conditions of OTM Facility, SIP registration through OTM facility, the Scheme Information Document, Statement of Additional Information, Key Information Memorandum, Instructions and Addendum issued from time to time of the respective Scheme(s) of Mutual
• Date and the validity of the mandate should be mentioned in DD/MM/YYYY format.
• Tick on the respective option to select your choice of action and instruction.
• The numeric data like Bank account number, Investors account number should be left padded with zeroes.
• Please mention the Name of Bank and Branch, IFSC/MICR Code and provide an original cancelled copy of the cheque of the same bank account registered in One Time Mandate.
• Amount payable for service or maximum amount per transaction that could be processed in words. The amount in figures should be same as the amount mentioned in words, in case of ambiguity the mandate will be rejected.
• If the investor wishes to opt for more than one dates/frequencies for debit from the bank account as in case of Systematic Investment Plan, it is advisable to select “As & when presented.”
• There is no maximum duration for enrolment.
• An investor has an option to choose the ‘End Date’ of the SIP by filling the date. Maximum end date can be 40 years.
• Please affix the Names of customers/and signatures as well as seal of Company (wherever required) and sign the undertaking.
• Investors enrolling for Daily SIP should select “As & when presented” as payment frequency in the OTM.