When you use First Order Today (FOT) for your SIP, the first instalment is debited immediately on the same day, and the corresponding NAV is allotted. However, subsequent instalments are processed based on the frequency you've selected (e.g., monthly, quarterly), but with an important condition: there must be a minimum gap of 30 days between each instalment.
How the 30-Day Gap Affects Subsequent Orders
After your first instalment (which is processed with FOT), the second instalment will only be debited if there is a minimum gap of 30 days between the two. If the gap is shorter, the second instalment will be skipped to maintain this 30-day rule.
Example 1: Monthly SIP with Deduction on the 1st of Each Month
Let’s say you set up a monthly SIP, and you want the deduction to occur on the 1st of every month. Here’s what happens:
- SIP Start Date: March 3rd, 2025 (First Order Today placed)
- First Instalment: Because of First Order Today, your first instalment will be debited on March 3rd, 2025.
- Subsequent Instalments: The second instalment would normally be debited on April 1st, 2025, but since there’s only a 29-day gap between March 3rd and April 1st, the second instalment will be skipped to ensure the 30-day gap rule is respected.
The second instalment will only be debited on May 1st, 2025, as this meets the 30-day minimum gap from the first instalment (March 3rd to May 1st).
Example 2: Impact of 30-Day Gap Rule
- SIP Start Date: March 1st, 2025
- First Instalment: Your first instalment is debited on March 1st, 2025 with First Order Today.
- Second Instalment: The second instalment is due on April 1st, 2025 (1st of the next month). However, since this is only 31 days from the first instalment, it meets the 30-day gap rule and will be processed normally.
Note: If the gap between the first instalment (First Order Today) and the next scheduled instalment is less than 30 days, the second instalment will be skipped, and the next deduction will occur after the full 30-day gap is met.
Conclusion
The reason the first month is skipped when using First Order Today is due to the 30-day minimum gap rule between instalments. In the case where the first instalment is debited and the next scheduled date falls within less than 30 days, the system skips that second instalment to ensure compliance with the rule. Therefore, the next deduction will be made only after the 30-day gap is satisfied.
When you use First Order Today (FOT) for your SIP, the first instalment is debited immediately on the same day, and the corresponding NAV is allotted. However, subsequent instalments are processed based on the frequency you've selected (e.g., monthly, quarterly), but with an important condition: there must be a minimum gap of 30 days between each instalment.
How the 30-Day Gap Affects Subsequent Orders
After your first instalment (which is processed with FOT), the second instalment will only be debited if there is a minimum gap of 30 days between the two. If the gap is shorter, the second instalment will be skipped to maintain this 30-day rule.
Example 1: Monthly SIP with Deduction on the 1st of Each Month
Let’s say you set up a monthly SIP, and you want the deduction to occur on the 1st of every month. Here’s what happens:
- SIP Start Date: March 3rd, 2025 (First Order Today placed)
- First Instalment: Because of First Order Today, your first instalment will be debited on March 3rd, 2025.
- Subsequent Instalments: The second instalment would normally be debited on April 1st, 2025, but since there’s only a 29-day gap between March 3rd and April 1st, the second instalment will be skipped to ensure the 30-day gap rule is respected.
The second instalment will only be debited on May 1st, 2025, as this meets the 30-day minimum gap from the first instalment (March 3rd to May 1st).
Example 2: Impact of 30-Day Gap Rule
- SIP Start Date: March 1st, 2025
- First Instalment: Your first instalment is debited on March 1st, 2025 with First Order Today.
- Second Instalment: The second instalment is due on April 1st, 2025 (1st of the next month). However, since this is only 31 days from the first instalment, it meets the 30-day gap rule and will be processed normally.
Note: If the gap between the first instalment (First Order Today) and the next scheduled instalment is less than 30 days, the second instalment will be skipped, and the next deduction will occur after the full 30-day gap is met.
Conclusion
The reason the first month is skipped when using First Order Today is due to the 30-day minimum gap rule between instalments. In the case where the first instalment is debited and the next scheduled date falls within less than 30 days, the system skips that second instalment to ensure compliance with the rule. Therefore, the next deduction will be made only after the 30-day gap is satisfied.
