Systematic Investment Plans - SIPs

  • Tell me more about SIPs
    A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.). A SIP is a planned approach towards investments and helps you inculcate the habit of saving and building wealth for the future.

    With SIP, your money is auto-debited from your bank account and invested into a specific mutual fund scheme. You are allocated certain number of units based on the ongoing market rate (called NAV or net asset value) for the day. Every time you invest money, additional units of the scheme are purchased at the market rate and added to your account. Hence, units are bought at different rates and investors benefit from Rupee-Cost Averaging and the Power of Compounding.

    With volatile markets, most investors remain skeptical about the best time to invest and try to 'time' their entry into the market. Rupee-cost averaging allows you to stop guessing. Since you are a regular investor, your money fetches more units when the price is low and lesser when the price is high. During volatile period, it may allow you to achieve a lower average cost per unit.

    Benefits of Systematic Investment Plans:
    ú Disciplined Saving
    ú Flexibility - You can discontinue the plan at any time.
    ú Long-Term Gains - Due to rupee-cost averaging and the power of compounding SIPs have the potential to deliver attractive returns over a long investment horizon.
    ú Convenience - SIP is a hassle-free mode of investment. It is easy to setup one in Jama
  • How do I setup an SIP in Jama
    Please select the fund as per your desired objective: Build Wealth (Equity), Park Cash (debt funds for returns better than bank), Save Tax (ELSS funds), Balanced Funds or Gold Funds.

    Simply tap on SIP at the bottom of the card of the fund. You can enter the amount, then select the frequency of the investment (monthly, quarterly) and the day when you wish the SIP to occur. Then enter the number of installments (egg: 120 for 10 years).

    If you wish the SIP to automatically debit the installment from your bank account, then tick the checkbox next to "Auto-Debit". If you leave this blank then the SIP will still happen - you will get an email and alert when the installment is due. Click on the payment link to make the installment.

    For more info on how to setup an Auto Debit SIP, please see the next FAQ
  • I forgot to register the mandate at my bank's Net banking site.
    Please register the Auto Debit Mandate as per the process listed in the FAQs at the top of this section. Once it is registered the auto debit should resume. In case it does not resume, then you can create another SIP and make sure that the mandate is registered on the same day (takes just 2-3 minutes as it is paperless).
  • I have SIPs in Regular Funds elsewhere. How do I move them to Jama and save on commission?
    Our Instant Switch feature allows you place switch orders to shift your holdings from anywhere to Jama. In this way you can save on commissions (upto 40%-50% over 20 years) when compared to regular funds. This Switch to Jama can shift all previous holdings.

    To stop future SIP installments on the other platforms, please cancel them on those platforms. Cancellation may take some time and effort but is well worth it as you save big on long term compounding commissions.
  • When will my next SIP installment be placed?
    Your next installment of SIP will usually happen as per the frequency of the order. For a monthly SIP this is usually at 30 days intervals.

    However in case of Auto Debit SIPs, there has to be atleast 30 days gap between the date of the first order (date when SIP is created) and the next installment. The first order is always when the SIP is placed. The Exchange and the Bank need some time to get the mandate processed.

    Example: If on 15-November, you create an SIP for the 10th of every month. Then the first order is for 15-November itself (even if you do not pay for it). The next installment will NOT be on the 10th of the following month i.e. 10-December. This is because 30 days have not passed. So the next installment for the SIP will be on 10-January.
  • How do I cancel an SIP
    Go to "My SIPs" and select the SIP you wish to cancel. You will see a "Cancel" button. You will be asked for a confirmation and after that the SIP will be cancelled.

    In case the SIP is not cancelled for any reason, please do raise a ticket and will get back promptly.
  • My auto debit installment did not get debited
    If the SIP is of auto debit type, then please check if your mandate is approved. Once mandate is approved then the next installment can happen.

    If your SIP is not auto debit type, then it is possible that you missed the payment link sent to you by email. You may also have missed the alerts from the Jama application. No worries, you can still go to the My SIPs screen and hit the Invest or Plus button to make a fresh lumpsum purchase into the same fund.
  • Why did my auto debit installment got debited early?
    It is possible that the auto debit mandate may get triggered 1-2 business days in advance. This could happen if there are any intervening holidays, so that the funds reach the Mutual Fund on time.
  • What does self approving a mandate do?
    Auto Debit mandates take several days to get approved since there are many hand offs between the Exchange, Bank and the Mutual Fund. In case you already registered your mandate with your Bank (via Net Banking) and you wish to stop receiving reminders from Jama then you can mark the Mandate as 'self approved'.

    The mandate will continue to show as Pending until the final status is received from the Mutual Fund.
  • I missed paying for my SIP installment. Can I pay again?
    Yes of course. If for any reason you miss paying an SIP installment, you can go to the My SIPs screen and hit the Invest or Plus button to make a fresh lumpsum purchase into the same fund.
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