Mutual fund registrar and transfer Agent (R&T) company CAMS has introduced a facility called ‘digiSIP’ for online registration of SIP or Systematic Investment Plans. The new facility will reduce the time needed to set up a SIP from 30 days to 7 days.
A SIP or Systematic Investment Plan, invests a fixed sum of money, typically each month in a mutual fund. This averages out an investor’s purchase price and reduces risk. You can read more about the benefits of a SIP, here.
The digiSIP is a completely online facility. For existing investors, the digiSIP will use a pre-filled form to reduce hassle and paperwork.
Investors can also create a bank mandate to pay for the SIP through net banking or eMandate. If they have an existing bank mandate, they can use it for the digiSIP.
Once the mandate is set up, it can be used for any number of SIPs through CAMS. The digiSIP facility also allows investors/advisors to register multiple SIPs in one go.
The digiSIP will also do away with the hassle of physical forms and mandates.