SMART SIP A new & unique SIP

 What is a SIP?

SIP, or Systematic Investment Plan, is an investment option provided by mutual funds that enables investors to invest a fixed amount at regular intervals, typically monthly or quarterly. It promotes the habit of regular savings and investing, regardless of market conditions

What are the benefits of SIP?

The benefits of SIP investment are several. A few of them are rupee cost averaging, disciplined investing, flexibility of investment & amount, long term wealth creation as a resultant of compounding effect.

What is SMART SIP

I have developed a very unique product which i believe no MF house or distribution platform can offer due to technical & skill limitation.

SMART SIP carries all the advantages of the conventional SIP but some disadvantages with conventional SIP due to technical limitations are

1. Timing is predefined irrespective of mkt sentiments.

2. Continues to invest in a pre-selected fund even if the fund is not performing .

3. The short term returns are many times very low which is demotivating for investors and investors consider discontinuation of SIP which destroys LT objectives or Goal of investment.

4.In a standard SIP investment is not actively managed once mandate is given for date, amount and selected fund it regularly gets invested passively and returns are more dependent on selected fund performance.

5. The  returns are dependent upon the Benchmark index selected by the MF scheme.No scope of Alpha generation

So in our SMART SIP it is actively managed SIP wherein we keep control of timing of investment in our hand & also  have the option to select any other fund or portfolio for investment depending upon the mkt sentiments.This ensures that every monthly contribution is getting invested in the most appropriate portfolio based upon our research and performance which results in higher short & long returns thus generating Alpha which is just not possible in standard SIP.

Capitalisation of Long term tax advantages 

Also after one year of investment the fund is actively reviewed and regular switch advised to take advantage of long term capital gain tax advantages which makes overall corpus more tax efficient.