OTM or One Time Mandate In Mutual Funds
In this video I shall be explaining the concept of OTM or One Time Mandate, the process, its features & benefits, the applicability and we’ll end with an example explaining how to get started.
One can invest in a mutual fund either through lump sum mode or through a Systematic Investment Plan which is usually referred to as SIP.
Under an SIP, the investment amount will be deducted from the investor's bank account periodically and invested in the specified mutual fund scheme.
Usually, investors register the SIP by adding a new biller through their bank's net banking portal, however you have to add a biller every time you do a SIP.
Also, some investors may not have net banking privileges or may not wish to use them but still want to invest regularly in mutual funds.
This is where 'One Time Mandate' or OTM comes to the rescue of such investors.