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Why the mandate amount is higher than your SIP amount?
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It sounds like you're referring to a discrepancy between your Systematic Investment Plan (SIP) amount and the mandated amount set by your bank or mutual fund company. Here are some possible reasons why the mandated amount is higher than your SIP amount:
1. Buffer for Future Increases
Many Asset Management Companies (AMCs) set the mandate amount higher than your SIP amount to accommodate future increases in SIP contributions without requiring a new mandate.
2. Step-Up SIP Option
If you've opted for a Step-Up SIP, where your SIP amount increases periodically, the mandate is set higher to account for future higher deductions.
3. Flexi SIP Feature
Some funds offer Flexi SIP, which allows you to invest higher amounts in certain months based on market conditions. A higher mandate ensures such transactions go through without issues.
4. Technical or Bank Requirements
Banks and mutual funds sometimes set a higher mandate as a precautionary measure to avoid transaction failures due to minor discrepancies.
5. One Mandate for Multiple SIPs
If you have multiple SIPs under the same bank mandate, the higher mandate amount may be set to cover all of them together.
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