Daily SIP seeks to minimize market risk, generate greater returns MUMBAI: Amidst highly volatile stock markets, the daily systematic investment plan introduced by Bharti AXA Investment Mangers is expected to minimize risk and to generate greater risk adjusted returns while increasing participation.
The feature, introduced for the first time in India with an equity scheme, allows one to invest on daily basis a minimum Rs 300 per day. It has a lock-in period of one month, during which an investor has to pay the SIP amount without any default. Beyond this time, an investor can withdraw the money invested with return at any point of time. If one should fail to pay the SIP amount on any particular working day, his investment will not default but his return will be adjusted against the failure of payment for that day. "Daily SIP has been launched in view of rising volatility in the market. It will help minimize the risk and is expected to generate greater risk adjusted returns as against other monthly and quarterly plans," said Sandeep Dasgupta, chief executive officer, Bharti AXA mutual fund. Concurring the same, Anita Gandhi, head – mutual fund, Arihant Capital, said, "in view of rising volatility and complexities, daily SIP will definitely fetch more retail participation across the country, especially smaller cities and towns. However, in metros like Mumbai or Delhi the idea may not be successful." Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Bharti AXA aims to make the facility accessible to retail investors in smaller towns and cities. It plans a big promotional campaign for the daily SIP and will allocate 70-80 per cent of its total advertisement cost to this particular theme. If successful, the fund house plans to bring down the minimum amount to Rs 150 to make it more affordable to retail investors across the country. The fund house will also try to make the daily SIP available with its newer schemes in the days to come. Added Bharti's Dasgupta, "in order make the daily SIP payment hassle free, we have arranged auto debit facility for investors. We have already tied up with HDFC Bank, Axis Bank and Bank of Baroda, for the same." Bharti AXA is also eyeing tie-ups with another 3-4 private banks in this regard after the closure of NFO of the equity scheme on October 1. "Even HNIs are looking for daily SIP as they find it a feasible option in a highly volatile market. We are getting queries from them," revealed Dasgupta. However, a section of distributors are keeping a close watch on Bharti's daily SIP for its high transaction cost under auto debit mode. "The electronic clearing system transaction cost is Rs 27. We need to see how the fund house, which accepts daily SIP payment through that mode, manages the cost to generate high returns for its investors," said a fund distribution head of a big brokerage. Visit site at – http://investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Forums- http://forums.investorline.co.in/ Iwebs Open Source Web Publishing Platform - http://webs.investorline.co.in/iwebs/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
