ICICI Prudential Asset Management Company has made changes in the scheme information document (SID) and the key information memorandum (KIM) of all the schemes to allow the top-up feature under its systematic investment plan (SIP).

The top-up facility will come into effect from June 15.

Under the variable SIP top-up facility, investors can increase monthly instalments by five percentage points starting with 10 per cent (on monthly instalment), while under fixed top-up option it goes up in multiples of ₹500. However, this option will not be available for investors who are already investing through SIP.

Amar Shah, Head (Retail Business), ICICI Prudential AMC, said the SIP top-up is one of the important features that can be used to reach financial goals faster by regularly increasing the SIP amount.

Gainful usage

The increase in annual income of individuals is reflected in growing lifestyle and aspirations, but the extra earnings should also be used gainfully to achieve financial goals, he said. This apart, he added, investors can stay ahead of inflation by regularly increasing the SIP amount every year with the top-up facility and putting it on autopilot mode.

The systematic investment plan has become the most preferred tool among investors as large fund houses have been promoting it hard to attract steady fund flow. According to industry estimates, the number of folios under SIP has increased 30 per cent in March to 93.44 lakh from 71.70 lakh in the same period last year while the inflow jumped 39 per cent to ₹2,747 crore (₹1,971 crore).

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