Question 1

Do I need to invest additional money from my bank account to start Mutual Fund SIP?

Accepted Answer

While you may choose to increase your SIP amount, by default, you do not need to add extra capital from your bank account. The “Compound” feature is designed so that the interest payouts you receive from your Bonds cover the Mutual Fund SIP installments. However, you must ensure your bond interest amount after TDS deduction, is at least equal to the minimum SIP amount of the fund you choose & that your bond pays monthly/quarterly coupons.

Question 2

Is this feature available for all bonds listed on IndiaBonds?

Accepted Answer

Not all bonds are eligible. "Compound" is available on specific bonds that offer monthly or quarterly payouts. You can easily find these by turning on the "Eligible bonds" filter when browsing the Order Book.

Question 3

Can I activate 'Compound' for bonds I have already purchased?

Accepted Answer

Yes! You can activate this feature for any eligible bond you currently hold. Simply go to your Order Book, find the bond, and look for the option to "Activate Compound."

Question 4

Is there a minimum interest amount required to be eligible for 'Compound'?

Accepted Answer

Yes. Since Mutual Funds have minimum SIP requirements (starting at ₹100, ₹500 or ₹1,000 depending on the scheme), your bond interest payout after TDS deduction must be sufficient to cover that minimum amount.

Question 5

If the investment happens automatically from my bond interest, why do I need to set up a bank mandate?

Accepted Answer

This is a regulatory requirement. The bond issuer deposits your interest into your bank account first. Mandate creation is a one-time process. It allows the Indian Clearing Corporation Limited (ICCL) to automatically pull that specific amount to invest in your chosen Mutual Fund SIP.

Question 6

How does 'Compound' ensure my SIP date matches my Bond Interest payout date?

Accepted Answer

The system automatically suggests SIP dates 3 days after your bond’s next interest payment. This ensures the funds hit your bank account before the SIP deduction happens, keeping the process smooth.

Question 7

What is UCC Authorization and why is it mandatory?

Accepted Answer

UCC stands for Unique Client Code. It is a one-time registration required by the BSE StAR MF platform to map your identity for Mutual Fund SIP transactions. Completing this ensures your SIPs are properly linked to your IndiaBonds profile.

Question 8

What role do BSE StAR MF and ICCL play in my investment?

Accepted Answer

They ensure safety and compliance. BSE StAR MF is the platform where the Mutual Fund transaction is executed, and ICCL (Indian Clearing Corporation Limited) handles the secure transfer of funds. We partner with them to ensure your money is handled by regulated, trusted entities.

Question 9

Can I choose any Mutual Fund scheme for my SIP, or are they pre-selected?

Accepted Answer

You have full flexibility to choose from a wide range of Debt, Equity, or Hybrid Mutual Funds based on your own financial goals, risk appetite & the type of bond you’ve invested in (monthly/quarterly). We provide the platform; you make the choice.

Question 10

Can I stop or pause the Compound SIP if I need the interest cash for an emergency?

Accepted Answer

Yes, you remain in full control of your money. If your financial needs change and you require the interest income for expenses, you can cancel or pause the SIP mandate through the platform.

Earn with Bonds. Compound with Mutual Funds

Compound Your Wealth with Bonds & SIPs

Choose from Equity, Debt & Hybrid Mutual Funds

How to Start Compound

Select a Bond

One - Time Setup

Automatic SIPs

Cancel Anytime

Benefit of Compound

FAQs