Birla Sun Life Mutual fund has taken their SIP scheme Online. This would enable users to buy and manage SIP through their site. This launch of Online SIP would create a trend for other financial houses to follow suit.
Mutual Fund SIP (Systematic Investment Plan) is a monthly based investment plan through which an investor could invest a fixed sum into mutual funds every month at pre-assigned dates. This hedges the investor from market volatility and derives maximum benefit as the investment is done at regular basis irrespective of market conditions.
Investors will be able to make new SIP purchases, renew their SIP on a month-by-month basis and cancel their SIP enrollment online. The service currently supports Citi, ING and Axis bank and may support other banks & payment gateways in future.
According to Mr. Anil Kumar, CEO, Birla Sun Life Mutual Fund,“ We have witnessed a 250 per cent jump in the total number of SIPs registered with Birla Sun Life Mutual Fund in the previous financial year. This year, we want to reach out to even more SIP investors.We now offer our investors the facility to track their investments through Online Portfolio Management service on internet, through Interactive Voice Response system on Toll free number and through Mobile Investment Manager on mobile.”
Online SIP or iSIP would benefit many mutual fund investors as they can quickly subscribe to an SIP scheme at the same time would also reduce paper work involved. Although the adoption of SIP and other investment avenues online may take time as many investors stick with their mutual funds and current investment advisors due to the high investment value.
Nonetheless these sort of initiatives are encouraging looking at still high savings rate and investment averse mentality of many Indians.The ease in buying-selling of SIP’s and other mutual funds may induce more money into financial markets.
