Paying your mutual fund SIP using UPI

Investing in mutual funds has become easier ever since investors were allowed to carry out transactions online. You can now transact online using Virtual Payment Address (VPA).

Existing mutual fund investors as well as new ones can use UPI as a payment option. You can invest a lump sum amount or via SIP (first installment) using the UPI interface.

The investor should be KYC compliant and have the BHIM application downloaded on their registered mobile phone. Keep the VPA information handy before carrying out online transactions.

The investor can access the fund website and click on online transactions. Existing investors can enter login credentials or basic details to access the folio. Next, the investor has to click on additional purchase or new purchase and enter scheme and amount details.

While choosing the payment option, the investor should click on UPI as payment mode. Once this is done, the investor will be prompted to enter his VPA to initiate the UPI transaction.

An authentication message will be sent to the investor. The investor has to then open the BHIM app and go to ‘pending UPI transactions’. Under the tab ‘pending with me’ the MF transaction will appear. Investor must click on it to complete the process.

1. VPA is an identifier that is created by the user by linking his bank account to the mobile payment application.
2. There is a per transaction limit of Rs 1 lakh for transactions carried out through UPI.