What is a flexi sip for mutual fund investment?
A flexible sip also known as a flexi sip allows investor to increase the monthly sip in case he or she has a higher surplus. for example if you are investing Rs. 3000 per month through a flexi SIP plan, in case the market conditions are good and you have extra cash in hand, you can increase the monthly SIP as per your convenience.
Systematic Investment Plans (SIP) that are part of Mutual Funds. SIP is a scheme which allows investors to invest a certain amount of money in a Mutual Fund over a period of time. For example, investors can invest anything as low as Rs. 500 in a Mutual Fund every month.
Typically, you cannot change the amount that gets deducted from your account for SIP. So if you need to tweak this amount, you’ll have to revise the ECS mandate which takes about 30 days to get implemented. This is quite a hassle. So, to avoid inconvenience fund houses and investment platforms devised the flexi SPI plan.
This plan allows you to change your SIP amount within a set range. Generally it is the minimum investment required at the lower end and the top end is set by the investor. For example: If you opt for a flexi SPI you can choose the range from Rs. 500 to Rs. 10,000, depending in your budget.