Reliance Mutual Fund has introduced a facility through which investors can register SIP mandates through its website. This is a completely paperless process, says a note issued by RMF. The fund house claims that it is the first to launch this facility.
As of now, to register an online SIP, investors have to first register on the AMC website and subsequently add the SIP scheme name/code as payee on the bank website. This process can be a bit longer.
RMF has made this process faster and easier, says a note issued by the company. To start an SIP, investors have to log on to RMF website and log in with their username and password. If investors are investing through a distributor, the ARN code is automatically captured. After choosing the scheme, investment amount and filling in other details, investors will be redirected to HDFC Bank’s payment gateway where they have to confirm the transaction. HDFC Bank charges Re. 1 for every SIP registration. The RMF spokesperson said that this amount is refunded to investors in three working days.
“There are two ways to register an SIP – physical and online. In the current online SIP registration facility provided by AMCs, investors have to first register with the AMC and then with the bank. This process can be cumbersome and time consuming. Under the new facility, they have to register only on our website,” said a RFM spokesperson.
Both existing and first time RMF investors can invest through this facility, provided they are KYC compliant. Those who are not KYC compliant can use the e-KYC facility provided by the fund house.
As of now, the facility is available only for investors who have HDFC Bank accounts. The fund house is in the process of onboarding a few more banks under this facility.
To make investment paperless, fund houses have started offering a number of facilities like SMS/call based investing, app based services, etc. to make life easier for investors. From May 1, fund houses have migrated to National Automated Clearing House (NACH) mandate which makes SIP registrations faster.
