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বাংলা

Systematic Investment Plan (SIP)

A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows an investor to invest a certain pre-determined amount at a regular interval (monthly, quarterly, yearly etc.). A SIP is a planned approach towards investments and helps to inculcate the habit of saving and building wealth for the future. Add-on features may be offered to individual investors opting for SIP in the scheme.


Buy and Surrender SIP Process

An investor can invest through SIP either by auto debit system provided against investor’s Bank Account or by providing monthly predetermined cheques via selling agents at a regular interval (monthly, quarterly, yearly etc.). Investor must have a BO Account. Investor will get SIP units in their BO Accounts based on a discount from ongoing Weekly Sale price of the fund. It is advisable to continue SIP investments with a long-term perspective, there is no compulsion. Investors can discontinue the plan at any time. If an investor wants to terminate the SIP before two (2) years, 1% discount from the repurchase/surrender price will be applicable on total accumulated invested amount on the date of cancellation of the scheme. After maturity of SIP, the investor can easily surrender through AMC or Selling Agents.


Benefits may be offered for Investors as such:

SIP encourages a disciplined investment. While invested through SIP, investor commits himself to save regularly. Different benefits may be offered as follows:

 

• Flexibility :
Investor can start SIP with a small amount that is minimum BDT 1,000 or any multiple of BDT 1,000. One can also increase/ decrease the amount being to be invested in regular fashion.

• Flexible SIP Tenor :
The scheme will be offered for at least 2 years or any other period set by AMC. However, investor can set SIP scheme for 3 years/ 5 years/7 years/10 years. After this time period the individual scheme will be matured and may be surrendered or to be continued after maturity. If surrendered, no fees/charges will be charged on surrender value.

• No Minimum lot size :
Under SIP, there will be no minimum lot size as like normal investors. Based on a discount from declared sales price per unit available, units will be credited to investor’s account. However, any fraction amount remaining will be converted when it sums up to one unit. The fractional amount will be kept as liability of the fund in a separate account head.

• Sale at discount and premium at Surrender :
SIP investor may buy units at a discount from weekly Sales Price offered to normal investors. In addition to that SIP investor can surrender at a premium of repurchase price offered to normal unit holders at maturity as per SIP brochure.

• CIP option for the SIP investors :
SIP investors can choose either option of cash dividend or cumulative investment plan (CIP). If a SIP investor chooses CIP (i.e. dividend reinvestment process) instead of cash dividend, they will also enjoy CIP units at a discount of prevailing sales price used for CIP conversion. After CIP conversion, they will get dividend on total number of units in the next year.

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