Now, a smart SIP that alters your monthly installment as per market valuation
- The ‘
Smart’ SIP tweaks the amount of investment or withdrawal based on equity valuations.
- The feature is available for all open-ended schemes, Equity Index Funds and Kotak Equity Hybrid Fund.
- The valuations are decided based on the net equity allocation of the
Kotak Balanced Advantage Fund.
One of India’s largest asset management companies
An SIP or systematic investment plan allows users to invest a fixed amount of money in a mutual fund over a certain period of time. The Smart SIP tweaks the amount of investment or withdrawal based on equity valuations– cheap, neutral and expensive.
So, when market valuations are expensive, the monthly SIP installment will be half of the base amount. And if they become cheap, the installment would be twice the base amount.
“The smart facility will help investors who are looking for an equity valuation-based investment approach to invest for their long-term goals. Equity markets will continue to be volatile. Smartness is in using this volatility in our favour. This is easy to understand and even easier to invest in,” said
The valuations are decided based on the net equity allocation of the Kotak Balanced Advantage Fund, which uses a combination of adjusted trailing Price to Earnings ratio (P/E ratio), and the trend as well as the sentiment data.
This platform is also available for redemptions through systematic withdrawal plan (SWP). The smart SWP enables the investor to redeem a higher amount when equity valuations are expensive and a lower amount when valuations are cheaper.
Investors can also opt for this option through the systematic transfer plan (
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