AMF - SIP Flexi - Axis Mutual Fund

Dec 30, 2014 - Flex SIP is designed for such situations. In a falling market scenario, a higher sum is automatically invested to get more units. On the other hand ...
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A SIP that understands your comfort Presenting Flex SIP from Axis Mutual Fund

Flex SIP: Make the most of your SIP SIPs help invest small amounts on a regular basis. When the markets are high, you get less number of units and when the markets are low, you get more number of units, thereby averaging out the cost of units. You may wish that the markets are always down when your SIP instalment is due, so that you get more number of units. Unfortunately, that is not in your control. Regular S I P

Markets H igh Less number of unit s bought

M ar ke ts L o w

More n u m b er o f u n its b o u g ht Am o unt inv es ted remains c ons tant

Flex SIP is designed for such situations. In a falling market scenario, a higher sum is automatically invested to get more units. On the other hand, in a rising market scenario, the pre-decided instalment amount gets invested. This plan could potentially lead to higher returns compared to a conventional SIP. Just like in a conventional SIP, in a Flex SIP, you decide the amount that you can invest per month and also the tenure. Flex S IP

M ar ke ts L o w

Markets H igh Amount inv est ed remains same

Higher amount invested to get more units

Am o unt i nv es ted remains c ons tant

This is how the Flex SIP works in comparison with a conventional SIP Regular SIP

Flex SIP

Month

NAV

Amount Invested (`)

Units Bought

Value

Amount Invested (`)

Units Bought

1

10

5,000

500

0

5,000

500

2

12

5,000

417

6,000

5,000

417

3

11

5,000

455

10,083

5,000

455

4

9

5,000

556

12,341

7,659

851

5

7

5,000

714

15,556

9,444

1,349

6

8

5,000

625

28,571

5,000

625

7

10

5,000

500

41,964

5,000

500

8

12

5,000

417

56,357

5,000

417

9

13

5,000

385

66,470

5,000

385

10

14

5,000

357

76,968

5,000

357

11

15

5,000

333

87,823

2,896*

193

12

13

5,000

385

78,623

Total Units

5,642

6,048

Total Investment (`)

60,000

60,000

Final Value (`)

73,352

78,623

Note: Numbers in the table have been rounded off for the ease of understanding. *This figure is for illustration purpose only and is used to keep the total investment amount equal in Regular SIP & Flex SIP for comparison. In Flex SIP, the per month investment amount is calculated as below: Amount to be invested = (Fixed amount per instalment x no. of instalments including current) - Market Value

or

Fixed amount per instalment

Whichever is higher

Advantages of Flex SIP Overall investment same as in a conventional SIP Potential to buy more number of units because of lower average cost of acquisition over a period of time with same investment amount

Minimum amount of investment `1,000 (and in multiples of `1) for all schemes except ELSS Fund `