MF SIP directly Via Amc query

[SC_23]

So I contacted many amc for their sip process most of them were saying it's better to opt via Biller method rather than setting up enach mandate

And they were also forcing me to use the same account for sip as my primary account with them.

So just wanna know setting up sip of more than 5000 will cause any problem if registered as biller. Correct me if I am wrong you can't automate recurring transaction of more than 5000 recently.

Can someone share their experience about setting up a different primary account for redemption and different account for monthly inflow of cash into mf.

 

[Cierdo]

The limit for auto payments upto 5000 is only valid for card payments.
There will be no issue in setting up SIPs via biller mode via netbanking.
Alternately, you can setup an NACH mandate, although I myself prefer the billing method.
In case you want to register multiple Bank Accounts at the AMC, you'll have to fill out a form (physical form) for addition of a bank account. That account can only be used to add funds, but not withdraw (similar to a Demat account).
I'd not advice this, as this will lead to a mess during accounting when you decide to sell, as usually we sell MFs after 5-7 years and at that time, you will have to go through your statements to check what amount was paid via SIP and lumpsum, in order to balance your books.
If you can handle this, you can proceed with adding a new bank account and setting up biller/NACH Mandate using that account.
Also, you can invest via your Demat account using the setup mentioned above, however, that beats the purpose of your question, so let me know if you need help with that.

 

[SC_23]

The limit for auto payments upto 5000 is only valid for card payments.

You mean as in payments done via dc/cc right ? Now I am wondering whether HDFC easyshop platinum reward points for doing mf transactions

Alternately, you can setup an NACH mandate, although I myself prefer the billing method.

Same here I thought nach mandate was necessary for sip now so opened a new bank account for this very purpose.

I'd not advice this, as this will lead to a mess during accounting when you decide to sell, as usually we sell MFs after 5-7 years and at that time, you will have to go through your statements to check what amount was paid via SIP and lumpsum, in order to balance your books.

I'm kinda confused with this part what my thought process was I was going to create a folio with SBI by making a lumpsum

And after folio creation would have start sip with HDFC. Let's say futher down the line if I am going to do a lumpsum via HDFC only will that still create some inconvenience?

And thanks for such a detailed comment. Actually I opted for the same method for NPS as well where primary account is SBI and investment will be done via HDFC. Shall I correct NPS primary account as well?

 

[Cierdo]

Just to make your life easy, I'd suggest maintain one account for all your investments.
Multiple accounts wont cause an issue, just make sure you are keeping a track of your account ledgers, in something like tally. In today's world, this may sound stupid, but you'll thank yourself 10 years down the line.
You can keep one bank account for your day to day use. I am guessing that SBI is an old active account that you have kept and HDFC is your salary account. (this is the case for me as well )
See when you make an investment from one account, you are locked to that account till redemption.
You cannot close that account, as if that account is a primary account in any AMC, then closing that would make things worse for you during redemption (You'll have to submit unnecessary forms and stuff), which will happen 10-20 years down the line.
What has been done, is done. Try to make sure that you have 1 account for investments, so that you do not have to forcibly maintain accounts in the future just because some of your investments are locked into an account.
The practice that I follow is, one account for investments (wherein I invest and get redemption proceeds and dividends) and one bank account for my spends (expenses).
This makes my life very easy during ITR filing and also I can close my spends account whenever I want, without the risk of it hampering my future redemption prospects.
That again, is my take, open for any suggestions or recommendations.

 

[SC_23]

That again, is my take, open for any suggestions or recommendations.

Fair take tbh

you will have to go through your statements to check what amount was paid via SIP and lumpsum, in order to balance your books.

Couldn't this be done with mf statements itself ?

 

[Cierdo]

Couldn't this be done with mf statements itself ?

It can be done via the MF statement, but if you run the SIP for long enough and have manual lumpsum transactions in between as well (good to add lumpsum in times of market falls of about 5-10%), considering a 5 year SIP, that would be 60 transactions of SIP alone, plus lumpsum transactions in between. Make that 10 years and you're looking at 120+ transactions. (I am assuming you'll stay invested for a long term and if you decide to switch, you will continue the investment in some other scheme)
It can be done, Ctrl+F for the win
But, this is the scenario with 1 scheme's SIP.
It is highly likely that as your income increases, you'll have 2-4 active SIPs, you may even have more than 1 SIP active now.

 

[SoN!c]

And thanks for such a detailed comment. Actually I opted for the same method for NPS as well where primary account is SBI and investment will be done via HDFC. Shall I correct NPS primary account as well?

Is is not simpler to setup SIPs from the main account registered with the respective AMC. You can set up an automatic transfer for the SIP amount from your main (salary) account so that funds will get transferred from your main account to the other one a few days before the SIP date. This will make the process automated i.e. it is as good as investing from your main account, but will be much more straightforward at the time of redemption.

 

[SC_23]

Is is not simpler to setup SIPs from the main account registered with the respective AMC. You can set up an automatic transfer for the SIP amount from your main (salary) account so that funds will get transferred from your main account to the other one a few days before the SIP date. This will make the process automated i.e. it is as good as investing from your main account, but will be much more straightforward at the time of redemption.

Yup opted for this method only