If you’re an MFD, SIPs are your backbone. They keep your AUM stable, your book consistent, and your long-term business strong.But there’s one silent problem that hurts almost every MFD without warning…Non-debited SIPs.You know those SIPs that are marked active, but for some reason, money never gets deducted from the investor’s bank account? Yeah. Those.They look harmless, but they can cause:
● declining AUM
● slipping client discipline
● missed compounding
● unnecessary follow-ups
● and long-term business lossThe worst part?
Most MFDs don’t even realise a SIP has stopped until weeks later.
That’s exactly why you need the best online platform for mutual fund distributor like that offered by REDVision Technologies, which tracks non-debited SIPs instantly.Let’s talk about how it actually helps.
First, what exactly is a Non-Debited SIP?
It’s very simple. A SIP is active on paper…but the investor’s bank didn’t deduct the amount.Reasons could be:
● insufficient bank balance
● mandate not registered properly
● bank error
● investor changed bank
● temporary technical issues
● ECS rejected
● mandate expiredAnd unless you’re checking every SIP manually (which no MFD has time for), you’ll miss these early warning signs.
Why are Non-Debited SIPs Such a Big Problem for MFDs?
Because every missed SIP affects:
● your AUM
● your trail income
● investor discipline
● compounding
● client relationship
One missed SIP becomes two…
wo become three…
And suddenly the SIP stops completely.
Now you're chasing the investor, explaining, reminding, requesting documents again — all extra work that could’ve been avoided.
This is Where Mutual Fund Software for IFA Changes Everything
A good mutual fund software for IFA doesn’t wait for you to find the missed SIPs.It brings them to you a dedicated Non-Debited SIP Report, which does all the heavy lifting.Here’s how it helps:
1. Instantly shows SIPs not debited in the last 45 days
Instead of checking folio by folio, the system automatically scans SIPs and shows:
● Active SIPs
● But where the last debit DID NOT happenThis alone saves you hours every month.
2. Helps you follow up at the right time
This is crucial.Early follow-up increases SIP recovery by 60 to 80 percent.The software lets you:
● quickly identify which investors need attention
● call/message them at the right time
● remind them to maintain balance or renew the mandateSmall nudge, big impact.
3. Protects your SIP book and AUM
Every SIP you save keeps your AUM stable.Every SIP you prevent from stopping protects your future trail.
Non-debited SIPs are the first sign of a SIP that might eventually stop.
Catching them early means protecting your business from avoidable loss.
4. Improves client servicing instantly
When you tell a client,“Sir, last month’s SIP didn’t get debited — should I check what happened?”You’re not just doing your job.You're showing that you’re tracking their investments actively.This builds massive trust.Clients feel:
● “My MFD is watching my investments”
● “I’m getting premium service”
● “Someone is keeping an eye on my financial discipline”It’s a small gesture with huge impact on investor confidence.
Final Thoughts
Non-debited SIPs look small individually. But collectively, they create AUM leakage, loss of trail, poor investor discipline, and lower long-term business value.A software that highlights these SIPs early gives you the power to fix issues before they become big problems.And honestly? Catching a missed SIP early can save a relationship, protect your AUM, and show clients that you truly care. That’s what good technology should do.
FAQs
1. What is a non-debited SIP?
A non-debited SIP is when a SIP is marked as active but the amount does not get deducted from the investor’s bank account. This can happen due to insufficient balance, bank errors, mandate issues, or technical failures.
2. Why do non-debited SIPs matter for MFDs?
Every missed SIP affects AUM, trail income, and the investor’s long-term compounding. If not identified early, these SIPs often stop completely, leading to avoidable business loss.
3. How often should MFDs review non-debited SIPs?
Ideally, MFDs should review them at least once a month. Regular monitoring helps in early follow-ups, fixing mandate issues on time, and maintaining SIP continuity.
4. What should an MFD do after identifying a non-debited SIP?
The MFD should contact the investor promptly, verify the reason for the missed debit, and guide them on the next steps — such as checking bank balance, updating mandates, or resolving technical errors — to ensure the SIP continues smoothly.