Initiating registration for Systematic Investment Plans (SIPs) in mutual funds has become much easier than before.
IDFC Mutual Fund has enabled UPI AutoPay, an NPCI initiative, allowing mutual fund investors to use their existing UPI applications such as Google Pay, PhonePe, Paytm, BHIM, Amazon Pay, etc. to create a mandate for autopay facility for their SysteSIP investments.
One of the most unique features of SIP investing via UPI AutoPay feature is that investors can easily pause, modify, or cancel the mandate through the application, as the need arises.
As per the fund house, it is an industry-first initiative and will help investors to conveniently make mutual fund investments.
UPI AutoPay SIP investment Process
Investors can initiate the SIP registration by entering their Virtual Payment Address (VPA) or the UPI handle, followed by a one-time authentication of the mandate in their UPI application.
The registration process is hassle-free, and the installment payments get deducted automatically on the selected SIP date. The wait time between registration and commencement of investments via SIP is expected to reduce with this initiative.
The registration process is seamless and instantaneous, providing an effective solution to investors for automatic payments of their investment according to the selected frequency. The SIP installment could commence after five calendar days of registering the mandate.
In addition, the instruction to debit the investor’s account would be sent on the date of the installment for the immediate realization of funds in the scheme account with the NAV of the same day. At present, an investor can invest up to Rs 5000 per transaction using UPI AutoPay.
Hemant Agrawal, Head of Operations and Information Technology, IDFC AMC says, “UPI AutoPay is a convenient way for investors to register their SIP, which outweighs the earlier mechanism of registering standing instructions on the net banking portal. The time between the SIP registration date and commencement of installments has been reduced from two weeks to a week, making it a time-saving facility. The process is completed within a few minutes with instant confirmation of the registration.”