Are you interested in growing your wealth but find traditional investment methods difficult? If so, then a mutual fund might be the perfect solution for you.
A mutual fund is a type of investment that pools money from many investors and invests it in a variety of assets, like stocks and bonds. A professional manager, then uses that money to buy different investments on behalf of all the contributors (investors) like you. This approach allows you to gain exposure to a diversified portfolio of investments without having to pick individual stocks or bonds yourself.
OTM stands for One Time Mandate in mutual funds. It's a one-time registration process where you allow your bank to deduct a certain amount from your savings account for investing in a specific mutual fund scheme.
One Time Mandate (OTM) in mutual funds covers the following transactions:
You can use your bank account to make payments for lump-sum investments. The amount will be debited based on the fixed limit set in your OTM form.
You can start new SIPs through the OTM service. There's no need to provide bank details or a canceled cheque again.
Duration of OTM: You can set up an OTM for a specific period, like five years, or keep it active until you decide to cancel it.
Overall, OTM is a convenient way to invest in mutual funds regularly and grow your money over time.
Once you set up an OTM, your bank will deduct the specified amount from your account based on requests from the mutual fund company. These requests come from investors like you who want to invest in the mutual fund scheme. This eliminates the need for manual payments every time you want to invest.
To register for a One Time Mandate (OTM), the process is straightforward. Follow these steps:
After submitting the form, the bank will process your request. Once approved, you can start using the OTM facility for mutual fund investments.
Contact your bank. They will provide you with an OTM form to fill out. The form will ask for your personal information, bank details, and investment preferences.
OTM is a secure process because it involves your bank and a registered mutual fund company.
Yes, you can cancel OTM at any time by contacting your bank.
Your folio number is your unique identification number for your mutual fund investment. You can find it in your account statements or by contacting the mutual fund company.
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Both Stock SIP and Mutual Fund SIP offer unique advantages and considerations. Stock SIP provides customization and potential for higher returns, while Mutual Fund SIP offers professional management and diversification. Your investment decision should depend on factors such as your risk appetite, market knowledge, time availability, and investment goals. It's advisable to consult with a financial advisor or stock market broker to make an informed choice that aligns with your financial objectives. Remember, investing always carries some degree of risk, so it's essential to invest wisely and stay updated with market trends and developments.
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