Baroda BNP Paribas Mutual Fund has unveiled the Lakshya SIP, an innovative investment option designed to help investors build long-term wealth while ensuring a regular monthly income. By combining the advantages of a Systematic Investment Plan (SIP) with a Systematic Withdrawal Plan (SWP), this offering aims to cater to the growing demand for structured financial planning in India.
The Lakshya SIP is a unique investment solution that targets both wealth creation and income generation. It allows investors to save systematically over a period of 8, 10, 12, or 15 years, contributing monthly to one of Baroda BNP Paribas Mutual Fund’s equity-oriented schemes.
After the chosen SIP term ends, the total invested amount is automatically transferred into a hybrid scheme, chosen by the investor. This triggers the initiation of an SWP, providing a regular monthly income from the accumulated corpus. This dual approach makes the Lakshya SIP an appealing choice for individuals looking to achieve long-term financial independence.
By investing in equity-oriented schemes, Lakshya SIP taps into the potential of the stock market, aiming to generate wealth over time. Systematic investments allow investors to benefit from the power of compounding. Equity-based SIPs are known to yield attractive returns over extended periods, helping investors grow their money in line with inflation and market performance.
2. Regular monthly income
One of the key features of the Lakshya SIP is its ability to convert accumulated funds into a regular source of income. Upon the completion of the SIP tenure, the invested amount shifts to a hybrid scheme, which then triggers an SWP.
3. Flexible investment terms
The Lakshya SIP is available for durations of 8, 10, 12, or 15 years, providing investors with flexibility depending on their financial goals and timelines.
4. Top-Up SIP for enhanced returns
The inclusion of a Top-Up SIP feature enhances the appeal of the Lakshya SIP. Investors can increase their SIP contributions periodically, helping them scale up their investments as their income grows.
The launch of Lakshya SIP comes at a time when SIPs are gaining significant traction in India. In October 2024, India’s mutual fund industry saw a massive 49% year-on-year increase in SIP inflows, reaching ₹25,323 crore. This growth indicates a shift in investor preference towards disciplined, long-term investing, and Baroda BNP Paribas Mutual Fund aims to cater to this trend with its new offering.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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