Diff b/n SIP and additional purchase in same folio on our own?

[aarthi_hb]

Hi, could some body pls let me know the diff b/n SIP and additional purchase in same folio on our own?
Also, i want to know how exit load charges applciable when u do a additioanl purchase in a folio.
Like say i purchased some units in Fund X in July 2010, and some more units in same fund X in Jan 2011 and now i redeem all units in Oct 2011, will there be 1% exit load on all units on or it will be just on addl units or none

hope my doubt is clear

thanks in advance for your time

 

[2021]

There's no diference as such. An SIP has fixed date of purchase whereas addtional investment can be made on any trading day. You can even have same sip and addtional investment on same day.

As for exit load, fund houses use FIFO (first in first out) method for exit load. Units acquired first are used for redemption first. Suppose you have 10 units of 10 NAV on 1st Jan, 11 units of 11 NAV on 1st Feb in the year 2010 and you make redemption in 2nd Jan 2011 for rs 120 and current nav is 10 than 10 units will not be charged and 2 units of Feb will be charged exit load. So left unit with you would be 9 now. Just remember this to make it easy, what you buy first will be treated 1st for loads.

 

[aarthi_hb]

There's no diference as such. An SIP has fixed date of purchase whereas addtional investment can be made on any trading day. You can even have same sip and addtional investment on same day.

As for exit load, fund houses use FIFO (first in first out) method for exit load. Units acquired first are used for redemption first. Suppose you have 10 units of 10 NAV on 1st Jan, 11 units of 11 NAV on 1st Feb in the year 2010 and you make redemption in 2nd Jan 2011 for rs 120 and current nav is 10 than 10 units will not be charged and 2 units of Feb will be charged exit load. So left unit with you would be 9 now. Just remember this to make it easy, what you buy first will be treated 1st for loads.

thanks for the info