Inadequate funds in the bank account when the SIP mandate hits the bank account is a painful experience. Especially in the last three months when the income is low due to tax deductions and there is not much leg room for salaried individuals, SIP hitting your bank account goes for a toss if there is inadequate balance. Many new investors also suffer from this as they forget to keep the money in their bank account.
Here are a few things you should know in case such a thing happens with you:
Many first timers are not aware of this. If there is no adequate balance in the bank account, the bank charges you a penalty. This charge may vary from bank to bank. So be prepared to pay it.
Fund houses and brokers do send you an intimation SMS or email or both. This intimation is sent at least two days before the SIP due date. This enables the SIP investor to keep adequate amount of money in the bank account. If you have not updated your contact details with the fund house, do it now. It will help you such embarrassing situation of inadequate funds in bank account.
Most investors keep their salary bank account and bank account used for investment separate. Job jumps lead to multiple salary accounts. But if you keep the investment bank account separate it helps. However, that also means that the bank account used to invest must be adequately funded. To ensure this one should use standing instruction. Even if you forget to transfer money from salary bank account to investment bank account, the standing instruction helps you to keep the investment bank account well- funded ahead of SIP dates.
You can also buy online
Even if you take all the precautions, there is a possibility that the SIP mandate fails. In such a situation do not lose your heart. Instead opt to invest the same amount of money in the scheme. You can do so easily online with a click of a button.moneycontrol