Are the funds for my SIP deducted from my bank account directly?
Systematic Investment Planning (SIP) is a mode of investing money that allows you to invest in a certain predetermined amount at a regular interval (weekly, monthly, quarterly, etc). SIPs are also used to invest in stocks.
Once you set up an SIP, you needn’t worry about placing the orders manually at regular intervals. The system automatically places your orders, provided you have sufficient funds in your trading account.
Do note that the funds are deducted from your Trading account, so please make sure the funds for your SIP are made available on the SIP date.
Please note, if the required funds are not available in your trading account on the specified date, the SIP order may fail.
To ensure your trading account has the necessary funds, you can use the e-Mandate facility.
The e-Mandate facility allows you to automatically transfer a specific amount of funds from your bank account to your trading account on a specific date.
Here is an article that explains how to set up an e-Mandate for your trading account.