An iSIP or an internet-based SIP is a completely paperless way of setting up an SIP. In an iSIP, after you have set up the SIP, you will have to add the Asset Management Company (AMC) as a biller in your bank through internet banking. This process will need to be done for every iSIP in every scheme. The AMC will then present monthly bills to your bank. If you select the auto-pay option while adding the biller, the payment will happen automatically when the bank receives the bill.
Key Features of XSIP
- Multiple SIPs can be registered under single Mandate for any AMC, subject to the cumulative SIP amount debited to customer, falling under the Mandate “Upper Limit” on a single debit date
- Only Member (MFI) will have flexibility of charging brokerage to client on SIP at the time of registration – this is a broker - client internal arrangement
- MFI/MFDs will be free to concentrate on procuring more business instead of getting involved in SIP administration