Investor Services
Systematic Investment Plan (SIP)
Overview
A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows an investor to invest a certain pre-determined amount at a regular interval (monthly, quarterly, yearly etc.). A SIP is a planned approach towards investments and helps to inculcate the habit of saving and building wealth for the future. Add-on features may be offered to individual investors opting for SIP in the scheme.
Buy and Surrender SIP Process
An investor can participate in SIP either through an auto-debit system linked to their bank account or by providing monthly predetermined cheques to selling agents at regular intervals (monthly, quarterly, yearly, etc.). The investor must have a BO Account. SIP units will be credited to the investor's BO Account at a discount from the prevailing weekly sale price of the fund. It is advisable to maintain a long-term perspective when investing through SIP, although there is no compulsion to do so. Investors have the flexibility to discontinue the SIP at any time.
If an investor wishes to terminate the SIP before two (2) years, a 1% discount on the total accumulated invested amount as of the cancellation date will be applicable against the repurchase/surrender price. Upon maturity of the SIP, investors can easily redeem their units through the AMC or Selling Agents.
Calculate your Systematic
Investment Plan
Monthly Investment (BDT)
Time Period (Years)
Expected Return (%)
Target Value (BDT)
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Investors may enjoy the following benefits:
SIP encourages disciplined investment habits as investors commit to saving regularly. It offers various benefits outlined below:
Flexibility
Investors can start SIP with a minimum amount of BDT 1,000 or any multiple thereof. They can also adjust the investment amount periodically.
Flexible SIP Tenure
The SIP scheme is typically offered for a minimum of 2 years or another period set by the AMC. However, investors can choose SIP tenures of 3 years, 5 years, 7 years, or 10 years. At maturity, the scheme can be surrendered or continued without any charges on the surrender value.
No Minimum Lot Size
SIP does not impose a minimum lot size like regular investments. Units are allocated based on a discount from the declared sales price per unit, with any remaining fractional amounts accumulating until they sum up to one unit, held separately as a liability of the fund.
Purchase at Discount, Premium at Surrender
SIP investors can purchase units at a discounted rate compared to the weekly Sales Price offered to regular investors. Upon maturity, they can surrender units at a premium repurchase price available to regular unit holders, as per the SIP brochure.
CIP Option for SIP Investors
SIP investors can opt for either cash dividends or a Cumulative Investment Plan (CIP). Opting for CIP means dividends are reinvested, earning additional CIP units at a discount from the prevailing sales price used for conversion. After conversion, dividends are paid on the total number of units held in the subsequent year.
