Setting up a Systematic Investment Plan (SIP) is a smart way to invest regularly, but making sure every payment goes through on time? That’s where many people face hiccups. Life gets busy, reminders get missed, and your investments may unintentionally fall off schedule.
This is exactly why the One Time Mandate (OTM) facility exists — to take the hassle out of recurring mutual fund payments. In this guide, we’ll break down how OTM works, why it’s useful, and how you can set it up to stay consistent with your SIP goals without lifting a finger every month. If you’ve ever struggled with staying consistent in your SIPs, automating them with tools like OTM could help you avoid missed payments and grow wealth steadily. Begin SIPs from just Rs. 100
What is One Time Mandate (OTM) in mutual funds?
A One Time Mandate, or OTM, is a feature that lets your mutual fund platform automatically pull money from your bank account — with your approval, of course. Once it’s set up, you don’t need to manually transfer money for every SIP or investment.
It works like a standing instruction. You allow your bank to debit a specific amount at regular intervals and transfer it to your chosen mutual fund. And the best part? You only set it up once. After that, your investments are powered on auto-pilot — secure, smooth, and uninterrupted.
Whether you're investing monthly or quarterly, OTM ensures the money reaches your fund on time, even if you’re travelling, working late, or simply forget. It’s a great way to stick to your investment plan without worrying about reminders or deadlines. Using OTM is like setting cruise control on your financial goals it keeps your SIPs running so your discipline doesn’t have to. Compare mutual funds across categories.
How does OTM work?
Let’s say you decide to invest Rs. 5,000 every month into a mutual fund SIP for 10 years. Instead of logging in and making 120 separate payments, you set up an OTM.
Here’s how the process unfolds:
- You go to your mutual fund platform and initiate an OTM.
- You authorise your bank to debit Rs. 5,000 on the 1st of every month and credit it to your selected SIP.
- Once approved, the payments happen automatically — no manual steps required.
But there’s one important thing to remember: your bank account needs to have enough balance on the debit date. If not, the transaction may fail, and you could even face penalties from your bank. So while OTM makes investing easier, keeping your account funded is still your responsibility.
With OTM in place, your SIP journey stays disciplined — helping you invest consistently without missing a beat.
This kind of automation not only saves time but helps ensure your investment habits stay strong, even during busy or unpredictable months. Open your mutual fund account now.
Key features of OTM
OTM is built around one goal — making your investment life easier. Here are the core features that make it a reliable tool for mutual fund investors:
- Set it once, and you’re sorted: Just like the name says, it’s a one-time setup. Once authorised, it keeps running for as long as you want it to.
- You’re in control: Choose how much to invest, how often (monthly, quarterly, etc.), and for how long. You can even set a maximum debit limit.
- Works across fund houses: One OTM can be linked to multiple mutual fund schemes. You don’t need to repeat the process with every fund house.
- Modifiable anytime: Need to increase your SIP amount or stop it temporarily? You can update or cancel your OTM whenever your needs or financial plans change.
This one-time action gives you long-term control, flexibility, and freedom to invest without redoing the same tasks again and again. Explore mutual funds with strong returns.
Benefits of choosing OTM in mutual funds
Why do so many investors prefer OTM? Because it blends convenience, speed, and security — all in one step. Here's how it helps:
- Saves time and effort: No more filling out bank details or uploading documents each time you start a SIP.
- Perfect for SIP investors: If you invest regularly, OTM simplifies the whole process — just set it once and let it run.
- Better transaction safety: Since you're not repeatedly sharing sensitive bank information, the risk of misuse goes down.
- Clean, paperless process: OTM reduces documentation and makes investing feel as smooth as any modern digital transaction.
- Eco-friendly bonus: Less paperwork also means fewer physical forms, which supports a more sustainable approach to investing.
- One dashboard for all: Manage multiple SIPs across different mutual funds from a single platform with one mandate.
Whether you’re a beginner or a regular investor, OTM removes many of the hurdles that make investing feel complex — allowing you to focus on your financial goals instead. This is how OTM transforms investing from a chore into a smooth, secure, and time-saving process. Start your investment account in minutes.
What transactions can be done through the OTM facility?
OTM isn’t just for SIPs — it can power a variety of mutual fund transactions. Here’s what you can automate using the OTM facility:
- Systematic Investment Plans (SIPs): The most popular use case — fixed, recurring investments without manual payments.
- Lump sum investments: Invest a larger, one-time amount without initiating a separate payment.
- Systematic Transfer Plans (STPs): Shift money between different mutual fund schemes at regular intervals.
- Systematic Withdrawal Plans (SWPs): Automate regular withdrawals from your investments — helpful during retirement or income phases.
- Top-up SIPs: Gradually increase your SIP amount over time to keep pace with income growth or inflation.
By enabling so many transaction types, OTM gives you the flexibility to structure your investments any way you like — all while reducing the burden of repetitive tasks. With a single OTM, you can manage both incoming and outgoing flows across all stages of your investing journey. Explore best-performing funds this year.
How to set up a One Time Mandate (OTM) in mutual funds
Setting up an OTM might sound technical, but it’s actually a very simple process — especially on modern mutual fund platforms. Whether you’re investing through a website or an app, here’s how it typically works:
- Choose your mutual fund scheme: Start by picking the fund you want to invest in — whether it’s equity, debt, hybrid, or another category.
- Decide your amount: Enter how much you want to invest — either as a one-time amount or as part of a recurring SIP.
- Fill out the OTM form: This can usually be done online. Just enter your details like bank account number, frequency of investment, and upper debit limit.
- Authenticate your request: Most platforms will ask you to verify your OTM via an OTP or digital bank authorisation.
- Wait for confirmation: Once processed, you’ll get a notification confirming that the mandate is active.
And that’s it. Once this setup is complete, your mutual fund investments can run smoothly in the background, without you having to repeat any steps. Even first-time investors can complete this setup in minutes, unlocking a hands-free, consistent investing experience. Create your mutual fund account easily.
How to set up a one-time mandate (OTM) for mutual fund SIPs
If you’re specifically looking to set up an OTM for your SIP, the process is just as straightforward — and can often be completed in a matter of minutes. Here’s a step-by-step:
- Log in to your mutual fund platform — such as the Bajaj Finserv Mutual Fund platform.
- Navigate to profile settings and select the option to set up ‘Autopay’ or ‘OTM’.
- Pick your bank and choose the account you want to link.
- Enter the OTP sent to your registered mobile number to verify ownership.
- Provide authentication using debit card details or via your bank’s net banking page.
- Complete confirmation on the bank site and get redirected back to the fund house site.
This single registration lets your SIP run seamlessly every month without the need for constant monitoring. Find consistent mutual fund performers
What is the maximum mandate amount?
The maximum mandate amount is the upper limit you allow your bank to debit from your account for mutual fund investments. This could apply to both one-time investments and SIPs.
This amount is set during the OTM registration and can be changed later if needed. However, the exact limit allowed may depend on:
- Your bank’s policies
- Your account balance or transaction history
- Any regulatory caps imposed by the fund house or payment gateway
If you accidentally try to set a mandate above this limit, the request will fail unless revised. To avoid disruptions, it’s wise to set the limit slightly higher than your current SIP — especially if you plan to step up your investment in the future.
Eligible schemes for OTM
One of the most convenient things about the OTM facility is that it’s not limited to just one type of fund. Whether you prefer high-growth equity funds, steady debt funds, or a balanced mix in hybrid funds — OTM supports them all.
On platforms like Bajaj Finserv Mutual Fund, you can use a single OTM to invest across multiple schemes. That means:
- You don’t need to register a fresh mandate every time you try a new fund.
- You can run SIPs in different schemes using just one approved mandate.
- You stay in full control with a consolidated view of your investments.
In short, OTM is designed to support flexibility — no matter how many mutual fund strategies you want to follow. Having a single mandate for all schemes simplifies your investing dashboard and helps you diversify without more documentation. Check high-performing mutual funds now
How to automate an SIP?
Automating your SIP through OTM is one of the simplest and most effective ways to stay disciplined with your investments. Once your OTM is registered, here’s what you do:
- Choose your SIP plan: Decide how much you want to invest and how frequently — monthly, quarterly, or any other interval.
- Link it to your OTM: Select your approved OTM during the SIP setup process so that future debits happen automatically.
- Review and confirm: Check the final details and authorise the SIP to begin.
From here, your SIP runs on auto-mode. The chosen amount is debited from your bank and invested into your selected mutual fund on the exact date you specified. No login, no reminder, no effort. It’s a great way to keep building wealth consistently — even if you’re busy, travelling, or just forgetful. Once automated, SIPs reduce decision fatigue and increase the chances you’ll stick to your investment plan. Reduce taxes with ELSS mutual funds.
Drawbacks of one-time mandates
While OTM offers convenience and consistency, there are a few points to keep in mind before you rely on it completely:
- Risk of overdraft: If your bank account doesn’t have enough money on the debit date, you may face penalties or missed SIPs.
- Fixed payment amounts: OTMs are set for a fixed debit amount. If your financial situation changes, you may need to update the mandate — and that may take time.
- Possible bank charges: Some banks charge small fees for registering or maintaining mandates, especially if you have many OTMs.
- Complexity with multiple mandates: If you use different OTMs for different SIPs, keeping track of multiple dates and amounts can become tricky.
- “Set and forget” mindset: While automation is helpful, it can also lead to neglect. It’s still important to review your portfolio and adjust investments based on your goals.
- Impact on cash flow: If your income is irregular, automated debits might catch you off guard and disrupt your monthly budget.
Knowing these limitations helps you plan better — so that OTM supports your goals instead of creating unexpected hiccups.
Conclusion
A one-time mandate (OTM) simplifies your mutual fund investing experience. Instead of going through repeated approvals or manual payments every month, you authorise a one-time debit mandate and let your investments run on auto-pilot.
It’s like giving your money a disciplined path to grow without the everyday hassle.
Whether you’re investing in SIPs or making lump sum contributions, OTM saves time, effort, and reduces the chances of missing out on your financial goals due to forgotten payments or delays.
So, if you’ve been putting off regular investing because it feels like too much work, OTM might just be the nudge you need to stay consistent. OTM removes the frictions of investing, making it easier to stay committed, consistent, and clear on your long-term goals. Open your mutual fund account today
To make an informed choice, you can visit the Bajaj Finserv Mutual Fund Platform and browse through over 1,000 mutual fund options. You can even compare different funds and select the fund that best aligns with your goals.
