Question 1

How do I start an SIP?

Accepted Answer

You can start a hassle-free SIP without giving multiple post-dated cheques by providing a one-time instruction to debit your bank account through ECS or Auto Debit for SIP transactions. Your account will be automatically debited every month or quarter, as opted by you, and the amount will be used for allotment of units of the mutual fund scheme of your choice. To avail this facility, you need to submit a duly filled and signed application form, SIP registration cum ECS or Auto Debit mandate form signed by all applicants as per bank records, a cheque for the first SIP investment or a cancelled cheque or copy of the cheque, and submit the same at the nearest AMC branch.

Question 2

What is the minimum investment amount for investing in SIP?

Accepted Answer

The minimum SIP amount per installment depends on the SIP frequency. For monthly SIP, the minimum SIP amount can be Rs. 500 with 12 minimum installments or Rs. 1,000 with 6 minimum installments. For quarterly SIP, the minimum SIP amount can be Rs. 1,000 with 6 minimum installments or Rs. 1,500 with 4 minimum installments.

Question 3

What will be the default frequency for SIP if nothing is specified in the application form?

Accepted Answer

If the SIP frequency is not specified in the application form, the default frequency will be monthly.

Question 4

What is Perpetual SIP?

Accepted Answer

If you do not specify the SIP end date in the application form, or if the SIP date is unclear, the SIP will be treated as Perpetual SIP. This means the SIP will continue until December 2099.

Question 5

Can I register for multiple SIPs in the same scheme?

Accepted Answer

Yes, you can register for multiple SIPs in the same scheme and same plan in the same month, provided they are registered on different dates. However, separate ECS or Auto Debit mandate forms need to be submitted for each SIP registration.

Question 6

In which locations is the SIP ECS or Auto Debit facility available?

Accepted Answer

SIP payment through Electronic Clearing System or ECS facility is available in selected cities where the investor's bank and branch participate in local clearing. Some of the available locations include Agra, Ahmedabad, Allahabad, Amritsar, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Pune, Surat, Jaipur, Lucknow, Nagpur, Rajkot, Trivandrum, Vijayawada, and several other cities. Regional Electronic Clearing System facility is also available in Tamil Nadu, Karnataka, Andhra Pradesh, Rajasthan, and West Bengal, including West Bengal, Sikkim, and Andaman and Nicobar Islands. The list of cities may be modified, updated, changed, or removed in the future at the discretion of RBI, local clearing centre, or AMC without prior notice.

Question 7

How can I cancel an existing SIP in the folio?

Accepted Answer

To cancel an existing SIP in a folio, you need to download and complete the cancellation form, sign it as per the mode of holding, and send it to the nearest TMF branch or registrar service centre at least 15 days before the next SIP date. In case of three consecutive SIP failures due to insufficient balance in the bank account, the SIP may be automatically terminated without any written request from the investor.

Question 8

What is Micro SIP?

Accepted Answer

Micro SIP means Systematic Investment Plans where the aggregate of installments in a rolling 12-month period or in a financial year from April to March does not exceed Rs. 50,000.

Question 9

Which category of investors can invest in Micro SIP?

Accepted Answer

Individuals can invest in Micro SIP, including joint holders who are individuals, NRIs excluding PIOs, minors, and sole proprietorship firms.

Question 10

What is the maximum investment amount available for Micro SIP?

Accepted Answer

For Micro SIP, the maximum SIP amount can be Rs. 4,000 per month or Rs. 12,000 per quarter.

Question 11

Is KYC mandatory for investors investing through Micro SIP?

Accepted Answer

Yes, investors who wish to enroll for a Micro SIP are required to complete KYC formalities. In lieu of PAN, applicants must submit a valid proof of identity such as voter identity card, driving license, government or defense identification card, passport, photo ration card, photo debit card, employee ID card issued by companies registered with Registrar of Companies, photo identification issued by authorized officials, senior citizen or freedom fighter ID card, cards issued by universities or statutory institutes, PRAN card issued to NPS subscribers, or any other photo ID card issued by central or state government authorities.

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