To invest in MF in SIP mode.

#1
Hi
I am planning to investing Mutual funds through SIPs. I have a few doubts about it.
1. Can i increase the SIP amount without cancelling my existing MF?
eg: If i start with a sip of 500/month, can i increase it to 1000 after 6 months?
2. Can i change the asset allocation after a few years ?
eg: like change the equity - debt ratio from 80:20 to 60:40 after 5 years.
3. Can i change the type of MF like dividend reinvest mode to dividend pay out mode after a few years?

Need guidance on this.
 

Subhadip

Well-Known Member
#2
Hi
I am planning to investing Mutual funds through SIPs. I have a few doubts about it.
1. Can i increase the SIP amount without cancelling my existing MF?
eg: If i start with a sip of 500/month, can i increase it to 1000 after 6 months?
2. Can i change the asset allocation after a few years ?
eg: like change the equity - debt ratio from 80:20 to 60:40 after 5 years.
3. Can i change the type of MF like dividend reinvest mode to dividend pay out mode after a few years?

Need guidance on this.
Answer 1: yes
2. i do not think so.
3. yes you can
 
#3
Hi
I am planning to investing Mutual funds through SIPs. I have a few doubts about it.
1. Can i increase the SIP amount without cancelling my existing MF?
eg: If i start with a sip of 500/month, can i increase it to 1000 after 6 months?
2. Can i change the asset allocation after a few years ?
eg: like change the equity - debt ratio from 80:20 to 60:40 after 5 years.
3. Can i change the type of MF like dividend reinvest mode to dividend pay out mode after a few years?

Need guidance on this.

1) Yes. At any given point of time u can inc or dec your sip installment by way of giving new ECS mandate to Mutual fund company
2) NO. u cannot do it on each fund....As the objective of the fund is predecided & all depends on the fund managers call. Equity Fund Shd have min 65% in equity & max 100 can go....
u can only do one thing, u can change ur portfolio from time to time & increase allocations to Debt also.
3) Yes, you can but it will be considered as an switch & after doing so u have to again wait for 1 year to avoid exit charge(if u want to withdraw)

All the best:)
 
#4
I agree with the above replies for your 3 questions and will tell you the same that you can increase the SIP amount without cancelling your existing MF, you cannot change asset allocation after few years and you can change the type of MF. I would suggest that next time you should do your investment with proper planning so that you don’t face such circumstances and also make the best use of tools like mutual funds SIP calculator and others which help in taking a right decision with accurate details.
 
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