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Principal Times New avatar of SIP: Name it, pause it or do whatever you want

New avatar of SIP: Name it, pause it or do whatever you want

Principal Mutual Fund has introduced a new facility called ‘Super SIP’.
Team Cafemutual Jun 8, 2018

Principal Mutual Fund has introduced a new facility called ‘Super SIP’ through which investors can give a name to their SIPs, top up their SIPs systematically, pause their SIPs, choose any day to initiate SIP and much  more.

The unique feature of this facility is naming a SIP and this name would appear in the account statement. For instance, if your client is initiating a SIP for his daughter’s education, he may call it ‘Betiya ki Ujjawal Bhavishya Fund’ or ‘My angel’s education fund’.

Sharing rationale for this initiative, Gaurav Goyal, National Sales Head, Principal Mutual Fund believes that goal based investment is a win-win for all stakeholders – distributors, manufacturers and investors. “In my experience, a distributor does not start any sales conversation with schemes. He generally discusses financial goals with their clients. However, we all know that there is huge difference between investor returns and investment returns largely due to behavioural mistakes.”

He further said, “In my view, giving a name to an investment creates emotional attachment. For instance, an investor could start an SIP for his retirement, ‘Sunset days: Rs.50 lakh’. If he has invested Rs.20 lakh so far, the account statement will say, ‘You are Rs.30 lakh away to achieve your financial goal of retirement. Such a message would discourage investors from redeeming and help them stay put for long term.’’

Another key feature of the ‘Super SIP’ is that your clients can invest in three different funds of Principal Mutual Fund of their choice with a single application form and cheque.

Here are some of the features of Super SIP:

  • Your clients can modify their SIPs by increasing their SIPs amount every year without submitting any form or cheque.
  • Investors can invest in three different schemes of their choice. There is no bundling of products.
  • Investors can choose any day to initiate SIP. Also, they can choose different dates for all three SIPs.
  • Once begun, Super SIPs will continue unless the investors choose to stop. However, they can pause their SIPs if needed. The SIPs will automatically start once this pause period gets over.
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A k Gupta · 9 months ago
Good and practical idea,should be followed by all AMCs.
narayan sindhee · 9 months ago
SAMIR BHUNIA · 9 months ago
More transparent, reliable, flexible and next generation . Mutual Fund industry want this type of innovative ideas for our Nation Building through wealth creation of every Indian's.
Thanks for this unique and flexible idea.

Thanks a lot.
Principal Mutual Fund has implemented what was in mind. Kudos. I think the statement should indicate the target amount and target date. In periodical statements they should relate the current investment value to the target they proposed to achieve. This would help the client understand the need to top up or accelerate the goal achievement.
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