A program that allows an investor to provide post-dated cheques to the mutual fund to allot fresh units at specified intervals (usually monthly or quarterly). On the specified dates, the cheques are realized by the mutual fund and additional units at the prevailing NAV are allotted to the investor. This enables him to invest as little as Rs 1000 a month and take advantage of rupee cost averaging.
The investor is given the option of managing his investments ona periodic basis and thus inculcates a regular saving habit. He may issue a pre-determined number of post dated cheque in favour of the fund. He will get units on the date of the cheque at the NAV of that date.
A service option that allows investors to buy mutual fund shares on a regular schedule, usually through bank account deductions. tax-deferred: Term describing an investment whose accumulated earnings are free from taxation until the investor withdraws, sells or liquidates them.
A service option that allows a customer to purchase shares/units through regular deductions from a bank, cheque or savings account.
A plan that allows you to automatically purchase additional shares of a mutual fund on a regular basis, such as monthly or quarterly. This plan does not assure a profit or protect against a loss in a declining market. back to the top
A Systematic Investment Plan allows an investor to buy units of a mutual fund scheme on a regular basis by means of periodic investments into that scheme in a manner similar to instalments paid on purchase of normal goods. The investor is allotted units on a predetermined date specified in the offer document of the scheme. Here the Plan allows the investor to take advantage of the Rupee Cost Averaging methodology.
