{"id":6349,"date":"2022-04-28T07:35:31","date_gmt":"2022-04-28T07:35:31","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=6349"},"modified":"2025-09-17T07:24:40","modified_gmt":"2025-09-17T12:54:40","slug":"emandate-and-its-importance-for-mutual-funds","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/emandate-and-its-importance-for-mutual-funds","title":{"rendered":"eMandate and Its Importance for Mutual Funds"},"content":{"rendered":"

\"eMandate<\/h2>\n

Mutual Funds – Growth & Need for Investment Automation<\/b><\/span><\/h2>\n

A pertinent outcome of the ongoing digital revolution in India is the recent boom in Mutual Fund (MF) investments. Investment firms have onboarded over 3.2 million fresh investors in 2017, and these numbers have only gone up since partly due to digital initiatives undertaken by both\u00a0The Association of Mutual Funds India<\/b> (AMFI) and the<\/span> Securities and Exchange Board of India <\/b>(SEBI).<\/span><\/p>\n

This is despite the fact that demand for gold, the traditional investment alternative, declined by 14% during the same time period, according to reports<\/span><\/a>.<\/span><\/p>\n

Further, as of March 2019<\/span><\/a>, the assets under management (AUM) of the Indian mutual fund investment sector grew to approximately 24 trillion Indian rupees. This was solid year-on-year growth of 11.4 percent compared to the previous year.\u00a0<\/span><\/p>\n

\"Value<\/p>\n

These rapid swells in cash flow are due to the ease of opening and investing in mutual fund profiles, thanks to payments automation technology and eMandates<\/b><\/span><\/a>.\u00a0<\/span><\/p>\n

Typically, investors place money into mutual funds through a Systematic Investment Plan (SIP), which must be registered with the mutual fund by submitting a fully completed SIP form with all the relevant information.<\/p>\n

Then, the bank mandate must be given to the bank accompanied by a canceled check. The Electronic Clearing Service (ECS) is recorded only after these documents have been confirmed by the bank.<\/p>\n

The mutual fund formally starts the SIP account after the ECS is registered, and the investor’s bank account is debited each month on a specified date, to finance the SIP. The entire procedure is lengthy, and it can take anywhere from 20 to 25 days for the SIP to be registered.<\/p>\n

Instead, using the eNACH eMandate<\/b><\/span><\/a> route to register a mutual fund SIP is a more convenient option.<\/span> e<\/b>Mandate<\/b><\/span><\/a> for mutual funds<\/b> usually involves just a few simple steps for the investor:<\/span><\/p>\n