Step-up - SIP
Step-up SIP is a useful tool for investors who would like to gradually increase their contribution towards a particular financial goal. Using Step-up SIP investors can set the final amount they would like to contribute to reach a goal and work their way to that final amount gradually. They can do this by increasing their contribution quarterly, half-yearly or annually. Investors who would like to reach their financial goals within a period of time but can currently contribute only a limited amount towards their goals can use Step-up SIP.
While setting up a Step-up SIP the investor will be able to enter a 'Start amount' and a 'Final amount'. The investor will also need to specify a 'Step-up
amount' (in multiples of Rs.500) and a Step-up Frequency'. The step-up amount will determine how much the SIP contribution needs to be increased by and
the 'Step-up Frequency' will determine how often to increase the monthly contribution amount.
For example: If the investor specifies a start amount of Rs. 2000, a final amount of Rs. 10,000, Step-up amount of Rs.1000 and sets the Step-up Frequency to 'Quarterly' then a monthly contribution of Rs. 2000 is made for the first three monthly installments, it is then raised to Rs.3000 for the next three installments and so on till the amount reaches Rs.10,000. Once the final amount is reached then a constant monthly investment of Rs.10,000 is made thereon.
Investor can start contributing whatever amount he / she has towards a financial goal. Monthly contribution can be gradually increased till a target amount has been reached.
When to use
Step-up SIP is ideally suited for anyone who would like to gradually increase the amount the contribute towards a goal.
1. A beginning investor - an investor who is just starting with systematic investing can use the Step-up SIP. Investors who cannot contribute the entire sum that the goal requires but still would like to start contributing a part of that amount can use Step-up SIP.
How to setup
1. Login to your account, and click on 'Mutual funds' from the top bar
2. Select 'SIP setup' from the left menu
3. Click on 'Add a Step-Up SIP' in the Step-up SIP section
4. Enter the Account holders name, No. of Months you would like to run the SIP and the Date in which you would like the SIP to occur
5. Select the bank account for which you would like to generate the ECS form for.
6. You will then have to choose the scheme you would like to invest in. Click on 'Select scheme' and use the three fields to narrow down to the scheme of your choice
7. Enter the starting amount, Step-up amount, Step-up frequency and the final amount of your SIP.
8. After you have entered the information click on 'Add' to view a summary of your Step-up SIP.
9. If you would like to make an initial payment towards your SIP right away then check the box that says 'I would like to make an initial payment now'
10. Agree to our Terms and Conditions and click continue.
11. In the next page you will be provided with two options on how you can let us receive the signed ECS mandate.
12. On clicking 'Continue' you will either be taken to your banks payment gateway (if you have chosen to make an initial payment) or you will be taken to a confirmation page.
13. Your next step is to go to the 'Downloads' section of your account and download the ECS form, sign it and mail it back to us.
14. If you choose to request FundsIndia to send the form, we will do so at the end of the business day to your registered address.
15. That's it, the Step-up SIP setup in FundsIndia is complete!