The tool will
allow investors and their advisors to do goal-based investing and monitor it. The
fund house will soon launch Retirement and Child Savings Account as well.
Mumbai: DSP BlackRock Mutual
Fund has launched a new facility called ‘My Target Value Savings Account’ which
helps investors and their advisors to do goal-based investing and monitor their
progress with effect from August 1, 2011.
This is how it works.
- An
investor, Ram wants to save to buy a house for Rs. 50 lakh (Target Value) in
10 years but cannot determine how much to save.
- Based
on certain assumptions on returns, he can decide in consultation with his
advisor how much he needs to invest and whether to do a lump sum
investment or stagger it through regular SIP or a mix of the two.
- Accordingly,
Ram and advisor will select any of the schemes of DSP BlackRock MF
- His
Account Statement will specify a ‘Target Value’ of savings.
- Upon his account
reaching a value of 90% of the specified ‘Target Value’, he will get an SMS/email
alert.
- Once his account value has reached the defined ‘Target Value’, the
units of value equivalent to the set ‘Target Value’ will be switched into
any DSP BlackRock scheme Mutual Fund as specified by him or into DSP
BlackRock Money Manager Fund – Regular Plan – Growth, in case no scheme
has been specified, by default.
Investors can choose to
reset the Target Value at a higher amount in ‘My Target Value Savings Account’.
Further, they can also make
additional purchases, redemptions or switches at any time. An STP or SWP is
also allowed. Investors can open multiple ‘Target Value’ accounts and can
convert their existing folios into a ‘Target Value’ account. Investors will get
a personalized account statement which tracks their investment targets.
“Often, our investors and advisors ask us how to time their exit from a fund. So, now we are providing them clarity on how to approach the entire issue through a goal based perspective. We are giving more control to investors in a folio through this feature. This is the first in a series of initiatives to empower our investors and their advisors. We will launch the next series of Child Savings Account and Retirement Savings Account as well. We are doing one-on-one meetings with advisors to promote this new feature,” said a senior official from the fund house.
