I have an active SIP with a mutual fund and the NACH mandate is approved. I want to start another SIP in a different fund from the same fund house. Do I need to go through the whole mandate registration process again?
Yes, you can absolutely reuse the same ECS/NACH mandate for multiple SIPs, and it is a great way to save time. However, there is one important condition: all of the SIPs must be with the same mutual fund company (AMC). You cannot use a mandate from one AMC for another.
How Reusing a Mandate Works
My friend recently decided to start a second SIP in a different fund offered by the same mutual fund house he was already investing with. When he was going through the setup process on the investment platform, it asked him to choose a payment method. Instead of having to create a new mandate from scratch, he saw an option to use his existing, already approved mandate. He selected it, and his new SIP was set up instantly, without the usual waiting period for bank approval.
The ‘Same Mutual Fund’ Rule
I was discussing this with a financial advisor, and he stressed the main limitation of this feature. He explained that a NACH mandate is a specific payment instruction between your bank and one particular company. Therefore, a mandate that you have approved for ICICI Prudential Mutual Fund can be reused for any number of new SIPs in different ICICI funds. However, that same mandate cannot be used if you decide to start a new SIP with HDFC Mutual Fund. For that, you would need to create a new and separate mandate.
Checking Your Mandate’s Maximum Limit
The advisor also pointed out another detail to keep in mind. Every mandate you create has a maximum debit limit (for example, ₹25,000 or ₹1,00,000). He said that my friend could continue to add new SIPs to his existing mandate as long as the total monthly amount of all the SIPs linked to it does not exceed this pre-approved limit. If the total were to go above the limit, he would then need to create a new, second mandate.
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