Dec 30, 2014 - Flex SIP is designed for such situations. In a falling market scenario, a higher sum is automatically inv
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 `500 and in multiples of `500 for an ELSS Fund
Minimum number of instalments 12 monthly instalments for all schemes except for an ELSS Fund 6 instalments for an ELSS Fund
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability restricted to Rs. 1 Lakh). Trustee: Axis Mutual Fund Trustee Ltd. Investment Manager: Axis Asset Management Co. Ltd. (the AMC). Risk Factors: Axis Bank Ltd. is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
