OTM Full Form

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.

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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