Axis Mutual Fund introduces percentage-based SIP top-up plan; details here

 

Axis Mutual Fund has recently introduced a new Systematic Investment Plan (SIP) feature, allowing investors to opt for a percentage-based top-up option. This new option, effective from November 7, 2024, enables investors to increase their SIP contributions by a percentage amount at chosen intervals, offering enhanced flexibility. 

With this percentage-based SIP top-up, investors can choose to increment their SIP instalment by a minimum of 5% and in 5% increments thereafter. Please note that this feature is currently available for physical mode SIPs only and does not apply to the Axis ELSS Tax Saver Fund. Unitholders were notified of these changes through a notice-cum-addendum.

“Under this facility, the Investor can increase the SIP installment at predefined intervals or at any time as per the request, by fixed amount or percentage-based option. This facility is available for individual investors & SIPs opted for Monthly frequency only," the MF house said. 

Axis Mutual Fund has also made changes to their SIP date options, now offering investors the flexibility to choose any date from the 1st to the 28th, or even the last day of the month as their SIP date. This enhanced feature provides added convenience for individuals who are handling multiple investments.

Key features

Adjustable increments: Clients have the option to raise their SIP by a certain percentage of the initial amount, enabling them to progressively expand their investments in accordance with their financial advancement.

Diverse frequency choices: Additional contributions can be scheduled on a semi-annual, annual, or flexible basis, giving investors the flexibility to modify their top-ups at their discretion post a minimum six-month interval. A mandatory three-month gap is stipulated between dynamic top-ups.

What investors should note

> In order to utilize the SIP top-up facility, the minimum amount required is Re 1 and must be in multiples of Re 1 for all schemes offering SIP facility, with the exception of Axis ELSS Tax Saver Fund. For this particular fund, the minimum amount for SIP top-up is Rs 500 and in multiples of Rs 500 thereafter.

> Additionally, the minimum top-up percentage is set at 5% of the SIP amount and must be in multiples of 5% for all schemes offering SIP facility. At present, percentage based SIP top-up is only available for physical mode, with the exception of Axis ELSS Tax Saver Fund. Please note that the percentage based SIP top-up option is not available for this particular fund.

> In case of discrepancy in the top-up amount / percentage, SIP will be registered without a top-up facility.
> Top-up frequencies available are half-yearly/ yearly/ dynamic (i.e. as and when requested).
> In case top-up frequency is not indicated, it will be considered as yearly by default.
> The top-up date will correspond to the date of registered SIP.
> The top-up feature will be automatically enabled throughout the duration of the SIP program.
> For customers choosing the dynamic top-up option, there must be a minimum six-month gap between the registration of SIP and the first top-up request. Following this, there should be a minimum three-month gap between subsequent top-up requests.
> To avail of the SIP top-up facility, the application form must be submitted at least 21 days before the scheduled first installment date.