Sundaram Mutual Fund Unveils Prosperity SIP with Enhanced Features

Sundaram Mutual Fund has introduced a new Prosperity SIP option for investing in its growth schemes and added a SIP Top-up feature on BSE and NSE platforms. This update will start on September 6.

With the Prosperity SIP, investors can set up a Systematic Investment Plan (SIP) and a Systematic Withdrawal Plan (SWP). After the SIP period ends, the invested units will be switched to a target scheme of the investor’s choice (or stay in the same scheme). The SWP will begin once the switch transaction is processed.

The Prosperity SIP option is available to all investors except minors and can be used only with the growth option of the open-ended or hybrid schemes listed by the fund house. The fund house may update the list of eligible schemes over time.

Investors need to specify a Target Scheme for their lump-sum switch and Monthly SWP. If no Target Scheme is mentioned, the switch won’t be processed, and the SWP will start from the scheme selected for the SIP.

SIPs can be set for a fixed period of 7, 10, 12, 15, 20, 25, or 30 years. The minimum period is 7 years, with a default of 20 years if no period is chosen. Prosperity SIPs can be set up in a new or existing folio, but existing SIPs cannot be converted to Prosperity SIPs. The SIP must be registered for a monthly frequency, with a minimum amount of ₹2,000 and subsequent amounts in multiples of Re 1.

The Prosperity SIP can be accessed through Sundaram AMC’s physical branches, their website, mobile app, and BSE and NSE exchange platforms in non-demat mode. You can also make additional purchases or switch to the source scheme. Once the Prosperity SIP period ends, all accumulated units will be switched to the chosen Target Scheme.

Here’s how it works: After the SIP period ends, the total accumulated units will be available for a Systematic Withdrawal Plan (SWP). Fifteen days after the final SIP instalment, all units from the source scheme will be switched to the selected Target Scheme. If the Target Scheme is the same as the source scheme, the switch will not occur.

The notice also stated that the SIP Top-up feature will be available in non-demat mode on the BSE and NSE exchange platforms.

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.