Why Are Some Mutual Funds Restricted to SIP or One-Time Investments Only?
On FYERS, you may notice that certain mutual fund schemes allow investments only through SIP (Systematic Investment Plan) or only through one-time (lumpsum) mode. This is not a technical issue on FYERS—it is usually a restriction set by the Asset Management Company (AMC) or the exchange to manage fund operations and risk.
What Causes SIP- or One-time-only Restrictions?
Restrictions are typically based on operational, regulatory, or market-driven reasons. Common causes include:
1. AMC or exchange restrictions
- Fund houses and exchanges may set rules on how funds can accept investments.
- These rules help control fund size, manage liquidity, and prevent sudden inflows or outflows.
2. Fund type and risk level
- High-risk funds like small-cap or sectoral funds may allow only SIPs to limit volatility.
- SIPs spread investments over time, reducing exposure to market swings.
3. Liquidity and cash flow management
- Large lumpsum inflows can disrupt portfolio balance or exceed deployment capacity.
- AMCs may temporarily suspend one-time mode to ensure gradual capital deployment.
4. Fund size or sector overheating
- Restrictions may be applied if a fund is growing too quickly.
- In overheated sectors, AMCs limit investment options to avoid overvaluation risks.
- In rare cases, restrictions may appear due to temporary platform or exchange configuration issues.
6. Minimum investment thresholds
- Some schemes have high minimum amounts for one-time investments, effectively pushing investors to SIPs.
Check the AMC’s factsheet or Scheme Information Document (SID) for allowed investment modes. On FYERS, you can access this from the About section on the fund detail page. What If...
Scenario | Explanation |
---|
You want to start SIP in a one-time-only fund | Not allowed; consider a similar fund that supports SIPs. |
Fund previously supported both, now only one | AMCs may revise rules—check for updates or notices on FYERS. |
Can't find the SIP option for a fund | It may be a one-time-only NFO or have AMC-imposed restrictions. |
SIP instalment fails due to fund mode change | SIP may get paused or cancelled; FYERS will notify you if this occurs. |
Last updated: 17 Sep 2025
Related Articles
How do I Invest in Mutual Funds Through FYERS (SIP or One-Time)?
Mutual fund investments on FYERS can be made either as a one-time (lumpsum) transaction or through a Systematic Investment Plan (SIP). Both options are available on the FYERS App and Web platforms. Steps to Invest in Mutual Funds You can invest in ...
Quick Start Guide for Mutual Funds on FYERS
Discover, compare, and invest in mutual funds directly through FYERS. Learn how to explore fund categories, use filters, and place SIP or one-time orders on both FYERS App and Web using the guides below. On FYERS App On FYERS Web Part 1 – Browse & ...
Is There a Dedicated Mobile App for Mutual Fund Investments on FYERS?
No, there is no separate mobile app dedicated to mutual fund investing. Mutual fund services are built directly into the main FYERS App, which allows you to invest in direct mutual fund schemes via SIP or one-time mode. Steps To Access Mutual Funds ...
What Charges and Taxes Apply to Mutual Fund Investments in FYERS?
Mutual fund investing on FYERS is cost-efficient and transparent. While there are no platform fees for purchasing mutual funds, certain regulatory charges and transaction-level costs do apply. Here’s a breakdown of stamp duty, DP charges, and how to ...
What Are the Order Placement Timings and Settlement Timelines for Mutual Funds on FYERS?
When you invest in mutual funds through FYERS, the time of order placement and fund type both impact when your units are allotted, when the NAV is applied, and how long it takes for redeemed amounts to reflect in your bank account. FYERS follows BSE ...