Axis Mutual Fund introduces percentage based SIP top-up

Axis Mutual Fund has modified the terms of SIP top-up facility and introduced percentage based SIP top-up. The changes will be effective from November 7. The fund house informed about these changes to its unitholders through a notice-cum-addendum.

In the modification of terms of SIP top-up facility, the existing para under SIP Top-up facility is replaced with the following:

“Under this facility, the Investor can increase the SIP installment at predefined intervals or at any time as per the request, by fixed amount or percentage-based option. This facility is available for individual investors & SIPs opted for Monthly frequency only.”

To avail the said facilities, investors are required to note:

The minimum amount for SIP top-up facility is Re 1 and in multiples of Re 1 for all schemes offering SIP facility; except Axis ELSS Tax Saver Fund, where the minimum amount for SIP top-up is Rs 500 and in multiples of Rs 500 thereafter.

The minimum top-up percentage is 5% of the SIP amount and in multiples of 5% thereafter for all schemes offering SIP facility. Currently, percentage based SIP top-up is available for physical mode. The percentage based SIP top-up is unavailable for Axis ELSS Tax Saver Fund.

In case of discrepancy in the top-up amount / percentage, SIP will be registered without a top-up facility.

Top-up frequencies available are half-yearly/ yearly/ dynamic (i.e. as and when requested).

In case top-up frequency is not indicated, it will be considered as yearly by default.

The top-up date will correspond to the date of registered SIP.

Top-up will continue till the end of the SIP tenure by default.

In case of dynamic top-up option, the gap between SIP registration and first top-up request should be at least six months and subsequently the gap between two top-up requests should be at least three months.

The application form for availing the SIP top-up facility should be submitted 21 days before the first SIP installment date.

No modification can be made to SIP top-up frequency / amount / percentage during the SIP tenure. SIP top-up facility can be discontinued only by cancelling the SIP.

The fund house has also changed the provision of choosing any date as SIP date. Earlier the provision was that an investor shall have the option of choosing any date of the month as his SIP date other than 29th, 30th or 31st of a month.

Now after the modification to the terms, an investor shall have an option of choosing any date of the Month from 1st to 28th or last date of the month as his SIP date.


Source: Axis Mutual Fund

All other terms and conditions of SIP as mentioned in the SID of the scheme(s) and SAI of the fund shall remain unchanged. This notice cum addendum forms an integral part of the SID of the scheme(s) and SAI of the fund as amended from time to time.