Public sector finance company IDFC Mutual Fund has recently announced that it has in an industry-first move enabled UPI AutoPay for initiating registration for Systematic Investment Plans (SIPs) in mutual funds. The company, with this move, will allow mutual fund investors to add their existing Unified Payments Interface (UPI) applications to create a mandate for their SIP investments. UPI AutoPay, which is an NPCI, or National Payments Corporation of India, initiative will be compatible with all UPI applications including Pay, PhonePe, Paytm, BHIM, Amazon Pay, among others.
As per IDFC, the move is a first in the industry and will enable users to make mutual fund investments smoothly. One of the most unique features of this SIP investing via UPI AutoPay initiative is that investors have the option to pause, modify, or cancel the mandate through the chosen application any time they want.
“The mutual fund industry aims to reach 10 crore investors by the end of this decade, to achieve this, it is critical to onboard investors in a hassle-free manner. IDFC Mutual Fund is glad to pioneer UPI AutoPay in the mutual fund industry, aimed at reducing the wait time between registration and commencement of investments via SIP. Additionally, investors can easily pause, modify, or cancel the mandate through the application, as the need arises. This will stop potential investors from losing interest or deferring their investments,” said Vishal Kapoor, chief executive officer of IDFC AMC.
Commenting on the development, Nalin Bansal, chief of corporate and fintech relationships and key initiatives at NPCI said, “With the integration of UPI AutoPay, IDFC Mutual Fund investors can now set e-mandates within a few seconds, which in turn will completely transform the consumer experience in terms of their SIP payments. UPI AutoPay has the potential to create a valuable user engagement journey and we are confident that the addition of this unique feature is going to be a game-changer in the mutual fund space.”
How to Invest in IDFC Mutual Fund via UPI AutoPay SIP
Investors just need to enter their Virtual Payment Address (VPA) or UPI handle to initiate the he SIP registration. After this is done, they have to do a one-time authentication of the mandate in the UPI application of their choice. Currently, an UPI user can invest up to Rs 5000 per transaction via UPI AutoPay.
The registration process has been kept smooth and instantaneous, and will aim to provide effective solutions to users for automatic investment payments as per the chosen frequency. The SIP installment could commence after five calendar days of registering the mandate. The installment payment gets debited automatically through this process on the selected SIP date. The wait time between the registration and commencement is likely to reduce in the coming days.
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