To set up a systematic investment plan(SIP), the investor can either submit physical post dated cheques or give a bank mandate for auto debit of the SIP instalment amount. Setting up debit mandate takes long and the SIP takes up to 30 days.
To reduce the paperwork and time involved in setting up a debit mandate, registrars of mutual fundssuch as CAMS and Karvy have introduced e-mandate for investments.
To be able to use this service, one should have a Aadhaar number linked to the bank account that will be used for making investments.
Link: Investor should access the following link: https://mycams.camsonline.com/MYCAMS/MCEMandate.aspx or http://karvymfs.com/ckyc/KOTM.aspx?Module=K
Enter PAN, email id and mobile number. An OTP will be sent to the registered mobile number. Upon verifi cation, investor can choose the bank and enter bank details. Next, the mandate amount should be filled (maximum amount per transaction can be Rs 1 lakh). Investor can choose the transaction period for which he wants the mandate to be valid.
Once all the above details are filled and confirmed, the aadhaar authentication page will be displayed, so the investor can add his aadhaar number. Other details such as PAN, bank details, etc. will be pre-populated in the form. The investor can provide his consent through e-sign using the OTP sent to the registered number.
E-mandate will take about two to three working days to become effective.
Points to note
- Lump sum investments can also be made using the e-mandate.
- Facility can be availed only for the funds serviced by the registrar offering this facility