SBI Mutual Fund has announced to launch the new facilities - Fixed-end Period SIP, Top-up SIP & Flex Systematic Transfer, with effect from April 25, 2012. These facilities will ensure more flexibility in the hands of investors.
Fixed-end Period SIP
Investors will have a choice to opt for a SIP for a fixed period of 3-, 5-, 10- & 15-years in addition to the existing end date & perpetual SIP options. This facility will ensure long-term disciplined investment approach.
Conditions
The SIP end date will be considered perpetual if investor does not specify the end date of SIP initially. So, investors must carefully decide the date of SIP (which date in a month), frequency of SIP (monthly or quarterly), plan option (Growth or dividend).
Top-up SIP
Investor will have an option to increase the amount of SIP installment by a fixed amount at pre-defined intervals. It will enhance the flexibility of the investor to invest higher amounts during the tenure of the SIP.
Conditions
* Investors must specify about Top-up SIP while enrolling for the SIP facility.
* Minimum SIP Top-up amount - Rs.500 and in multiples of Rs.500.
* The Top-up details can not be modified once enrolled, it has to be cancelled & a fresh application will be made.
* In case of monthly SIP, Half-yearly and Annual frequency are available under the SIP Top-up. However, half-yearly will be the default option. Similarly, in case of quarterly SIP, only yearly frequency is available for top-up facility.
* Top-up will be allowed in all schemes where SIP facility is available.
Flex Systematic Transfer
Investor will have an option to transfer variable amounts from a source scheme to a target scheme at pre-defined intervals. Each time, the transfer amount will be different based on the Flex STP formula.
Flex STP formula
Flex STP Amount - [{fixed amount top be transferred*number of installments already executed, including the current installment}-market value of the investments through Flex STP in the transferee scheme on the date of transfer]
Conditions
The first Flex STP installment will be fixed amount decided by the investor. Only monthly and quarterly frequencies are available.
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