What is OTM for SIP?
One Time Mandate (OTM) for SIP (Systematic Investment Plan) investments is a facility provided by financial institutions or mutual fund companies that allows you to set up an automatic debit mandate for your SIP investments. You can use an SIP Calculator to figure out the amount you want to set up for automatic debit.
With an OTM, you authorize your bank or financial institution to debit a predetermined amount from your bank account at specified intervals (usually monthly) and invest that amount in a selected market-linked fund scheme through best SIP plans. This eliminates the need for manual payments for each SIP instalment, making the investment process more convenient and hassle-free for you.
- Insurance Companies
- Mutual Funds
|
Returns |
| Fund Name |
5 Years |
7 Years |
10 Years |
| SBI Life |
13.09% |
13.64% |
|
| HDFC Life |
19.5% |
16.14% |
|
| Axis Max Life |
29.43% |
23.7% |
|
| ICICI Prudential Life |
15.76% |
15.17% |
|
| Tata AIA Life |
29% |
23.3% |
|
| Bajaj Life |
16.61% |
14.65% |
|
| Birla Sun Life |
19.5% |
16.67% |
|
| PNB MetLife |
31.41% |
24.68% |
|
| Canara HSBC Life |
12.29% |
12.2% |
|
| Star Union Dai-ichi Life |
14.54% |
- |
|
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Last updated: Dec 2025
What are the Benefits of OTM in SIP?
OTM (One Time Mandate) in SIP offers several benefits that can make your investment journey smoother and more disciplined:
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Convenience: OTM automates the payment process, saving you the hassle of manually transferring funds for each SIP instalment.
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Time and Effort Saving: Once OTM is set up, it relieves you from arranging subsequent payments. It allows you to focus on other tasks.
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Discipline: It helps in maintaining investment discipline by ensuring regular contributions to SIP without the need for constant monitoring.
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Timeliness: OTM ensures timely payments, reducing the risk of missing SIP instalments and helping you stay on track with your investment goals.
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Cost-Effectiveness: By automating the payment process, OTM reduces the likelihood of incurring penalties or charges for missed payments.
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Flexibility: Investors can easily modify or cancel their OTM instructions as per their changing investment needs and financial situations.
SIP Calculator
Monthly Investment
₹22.4 L
Top Funds with High Returns (Past 7 Years)
13.24%
Equity Pension
15.9%
Opportunities Fund
18.4%
High Growth Fund
13.38%
Opportunities Fund
21.14%
Multi Cap Fund
14.18%
Accelerator Mid-Cap Fund II
15.9%
Multiplier
14.91%
Frontline Equity Fund
18.41%
Pension Mid Cap Fund
11.52%
Growth Plus Fund
14.6%
US Equity Fund
15.33%
Growth Opportunities Plus Fund
11.86%
Equity Top 250 Fund
13.48%
Future Opportunity Fund
12.29%
Pension Dynamic Equity Fund
14.7%
Pension Enhanced Equity
Steps to Automate Your SIP Plans
OTM (One Time Mandate) automates payments in the SIP Plans. It ensures timely investments without manual intervention. You can set up OTM in SIP through the following two popular methods:
Method 1: Online Banking
Step 1- Login: Access your net banking portal using your credentials.
Step 2- Locate SIP options: Look for sections like "Bill Pay," "Auto-Pay," or "Standing Instructions." These options might be under "Payments" or "Investments."
Step 3- Set up SIP: Choose "Market-Linked Investment Funds" or "SIP" as the payment category.
Step 4- Fill in details: Provide your fund provider's details, SIP folio number, desired SIP amount, and start date.
Step 5- Link bank account: Select the savings account from which you want the SIP to be deducted. You might need to enter your bank account details if not already linked.
Step 6- Activate OTM: Confirm and activate the OTM registration following on-screen instructions. The bank will verify the mandate with your chosen account.
Method 2: Offline Form
Step 1- Download the form: Get the OTM form from your fund provider's website or collect it from a branch.
Step 2- Fill out the details:
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Enter your bank account details (account number, IFSC code).
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Mention the SIP folio number or application number.
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Specify the SIP amount and preferred start date.
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Choose the OTM validity (usually "until cancelled").
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Sign the form, ensuring it matches your signature on record with the bank.
Step 3- Submit the form: Submit the completed OTM form in person at:
In Conclusion
The One Time Mandate for SIP offers a streamlined and convenient approach to investing, providing benefits such as hassle-free transactions, reduced paperwork, and enhanced efficiency. OTM promotes disciplined saving and ensures consistent investment by enabling automatic deductions. Ultimately, it empowers you to achieve your financial goals with ease.
