OTM Full Form

The full Form of OTM in a mutual fund is a “One Time Mandate.” It refers to a one-off standing instruction that an investor provides to their bank. This instruction sets up an automated transaction process between the investor’s bank account and the mutual fund company. 

For example, an investor with an OTM for a SIP would have the SIP amount auto-debited monthly from their bank account and transferred to the appropriate mutual fund.

Contents:

• OTM In Mutual Fund
• Advantages of OTM in Mutual Fund
• How do I activate OTM in mutual funds?
• How do I stop OTM in mutual funds?
• OTM Full Form – Quick Summary
• OTM In Mutual Fund – FAQ

OTM In Mutual Fund   

OTM in Mutual Funds refers to a one-time standing instruction given by the investor to the bank. This facilitates automatic transactions between the investor’s bank account and the Mutual Fund house. For instance, if an investor sets up an OTM for SIP (Systematic Investment Plan), the bank automatically debits the SIP amount monthly and transfers it to the respective mutual fund.

Advantages of OTM in Mutual Fund

The prime advantage of OTM in Mutual Funds is that it makes investing effortless. Once the OTM is set up, all future transactions, including SIPs, lumpsum investments, or even additional purchases, can be carried out smoothly without requiring physical documentation or cheques. 

Additional advantages include:

• Security: With OTM, the risk of cheque loss or fraud is mitigated as the transactions are carried out electronically.
• Flexibility: OTM allows investors to invest any amount on any day in a mutual fund.
• Reduced Paperwork: With OTM, the need for repetitive mandate registration is eliminated, making the process more efficient and environmentally friendly.

How do I activate OTM in mutual funds?

To activate OTM in mutual funds, follow these steps:

1. Visit the website of the mutual fund house or the investment platform like Alice blue.
2. Log in to your account.
3. Navigate to the ‘One Time Mandate’ or ‘OTM’ section.
4. Fill in the required details, including your bank account number, the maximum limit, etc.
5. Review the details and submit the form.
6. An OTM form will be generated, which needs to be printed, signed, and submitted to the respective mutual fund house or your bank.
7. You can make hassle-free transactions once your bank verifies and registers the mandate.

(Note: The actual process may vary slightly based on the platform or the mutual fund house.)

How do I stop OTM in mutual funds?

To stop OTM (Systematic Transfer Plan) in mutual funds via Alice Blue, you can follow these brief steps:

1. Log in to your Alice Blue trading account.
2. Navigate to the mutual funds section or portfolio management section.
3. Locate the specific mutual fund holding that you want to stop the OTM for.
4. Select the option to manage or modify the mutual fund holdings.
5. Look for the option related to stopping or canceling the OTM for that particular mutual fund.
6. Follow the on-screen instructions or prompts to confirm and execute the stop OTM request.
7. Verify the status of the OTM cancellation to ensure it has been successfully processed.
8. Keep track of any notifications or confirmations from Alice Blue regarding the stopped OTM instruction.

Do you want to expand your knowledge about mutual funds? We’ve got a list of must-read blogs that will help you do just that. Just click on the articles to find out more.

OTM Full Form – Quick Summary

• OTM stands for One Time Mandate in mutual funds, streamlining the investment process.
• It’s a standing instruction given to the bank, enabling automatic transactions between an investor’s account and the Mutual Fund house.
• The primary advantage of an OTM is effortless transactions, bolstered by security, flexibility, and reduced paperwork.

OTM In Mutual Fund  – FAQ

Click the link to access the web story now:One Time Mandate