How to fund my Mutual Fund SIP with Zerodha Coin?

Mutual Fund SIP is the best way to invest in Mutual Funds. The basic requirement of SIP is that you must have fund available in your trading account on the day of SIP. It’s very difficult to keep track of regular fund transfer for your SIP investment.

Zerodha started “e-Mandate” where you can setup your recurring fund transfer. In such cases, you don’t have to worry every month or so to remember to fund your SIP account.

This can be done in 2 ways –

1. Register an e-Mandate on Console using your net banking or debit card credentials.
2. Schedule recurring transactions to automatically transfer funds.

Let’s understand what is e-Mandate?

A mandate is a permission that you provide to your bank or any other financial institution to automatically debit the required amount from your bank account. Once an individual authorizes a concerned authority to debit from the said account on a fixed date of every month, through an e-NACH form, the rest is hassle-free for the individual. This is commonly used for the loan repayment, EMI, micro-lending payments, rental payments, Mutual Funds SIP, Equity SIP and other financial services.

Steps to setup e-Mandate with Zerodha Coin –

1. Login to Zerodha Console.
2. Go to Funds -> Bank Mandates.
3. Create New Mandate.
4. Select the bank, read & accept terms and conditions.
5. In next the screen, you will directed to NPCI – Mandate Approve Gateway
6. You can select your payment method via Net Banking or Debit Card.
7. Bank verification will take few days – A token amount will be debited and credited in this process.

After your e-Mandate is verified, you can set up recurring transaction.

To set up your transaction, you need to select the account credit date, frequency, amount and specify transaction name for reference.

• Frequency Option - Weekly, Monthly, Alternate months, Quarterly, or Yearly.
• Transaction Date – Your account credit date is when you need the fund in your Zerodha account which is known as your SIP date. The actual transaction will happen in one working day in advance.
• Amount – The maximum fund-per-day limit is 1 lakh. You can schedule multiple transactions in a day, but they should be in the 1 lakh limit.
• Transaction Name – The name will be displayed in your bank account statement. So give it an appropriate and meaningful name to avoid confusion.

How to stop your schedule recurring transaction with Zerodha e-Mandate?

When you schedule a transaction, there is no end date setup in the system. You need to manually go and cancel the transaction. To stop the payment, you need to give advance notice 3 to 4 working days ahead of time.

• Go to your schedule.
• Click on 3 dots on specific schedule.
• Delete schedule.

To cancel your e-Mandate registration, you need to lodge a request to your bank.