As an investor with Scripbox, there may be times when you want to invest an amount that exceeds your bank mandate limit. For example, you may have received a bonus you want to invest in or have extra savings in your bank account.
However, such investments may not be processed successfully due to the limit set by your bank. In such cases, staggered investments can be a solution for you with Scripbox.
Refresher – What is a bank mandate?
A bank mandate allows you to automate investing with Scripbox safely. It enables secure automatic debits from your bank account and thus allows you to invest via SIP or one-time investments on a scheduled date.
The bank mandate limit is the upper limit of how much money can be deducted from your account at one time by Scripbox. So if your bank mandate limit is Rs 50,000, you can invest in a SIP or one-time transaction inside that limit.
However, If you want to invest Rs 60,000 in one go, separate investment instructions must be made for Rs 50,000 and Rs 10,000. This can also often create separate folios in the same mutual fund. Otherwise, the bank will reject your investment instruction because it exceeds the auto-debit mandate limit.
This is the challenge we are attempting to solve for you in a better way.
What is Staggered Investment?
Staggered investments are a way of dividing your investment amount into two instructions that are spread over time.
Why is Staggered Investment Applicable to Your investment Order with Scripbox?
When your investment amount exceeds your bank mandate limit with Scripbox, staggered investments can ensure that your investment is processed successfully.
By dividing your investment into two, you can invest a higher amount even when your bank mandate limit is lower than your total investment amount.
How does Staggered Investment Work with Scripbox?
Staggered investment works by dividing your investment amount into two instructions. The first instruction will be placed on the same day, and your account will be debited for the first instruction amount only.
Once this is processed successfully, the remaining investment amount will be debited from your account, and the subsequent instruction will be placed.
As the investment is being processed over two days, the Net Asset Value (NAV) applicable for your split investments will differ.
How does this help you as an investor?
Staggered investments can help you invest a higher amount, even when your bank mandate limit with Scripbox is lower than your total investment amount.
By dividing your investment into two, you can ensure that your investment is processed successfully and that you take advantage of all investment opportunities.
We believe staggered investments are a helpful solution for investors with Scripbox who want to invest an amount that exceeds their bank mandate limit. This ensures investors can benefit from investment opportunities even when they want to invest beyond their bank mandate limit.
By dividing the investment into two instructions, staggered investments can ensure the investment is processed successfully, and investors can benefit from investment opportunities beyond their mandate limit.
We also ensure that all your investment amount goes into a single folio rather than multiple. This avoids a messy situation where you have multiple folios for the same fund, which in turn can cause confusion when you want to withdraw.