FAQs

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Mutual Fund Systematic Investment Plan (SIP)

• What is "Online Muual Fund Systematic Investment Plan" (Mutual Fund SIP)?

  Online Mutual Fund SIP is a new facility offered through indiainfoline.com using which you can place buy orders for a prespecified amount of your choice at regular intervals over a period of time as selected by you. For instance, you can select a Mutual Fund SIP for a no of installment, frequency and amount as specified by the Asset Management company.
  After you have provided the necessary details i.e the scheme, amount to be invested, frequency of investment, total time period and authorized India Infoline Limited (IIFL) vide your Mutual Fund SIP request, IIFL will place your Mutual Fund SIP buy orders at market price.

• Can all clients of India Infoline Limited avail Mutual Fund SIP facility?

  Yes. All clients registered after 1st January 2008 with India Infoline Limited can avail the Mutual Fund SIP facility.

• Why should I invest through Mutual Fund SIP ?

  The MUTUAL FUND SIP offers the following advantages
  

  • Disciplined investment approach
    Instead of investing large amounts sporadically, you achieve better results by investing smaller sums regularly. The MUTUAL FUND SIP ensures that you save some amount at least for the next 12-month period
  • Rupee cost averaging
    With MUTUAL FUND SIP you buy more units when the prices are low and fewer units when the prices are high. This results in averaging of cost per unit
  • Avoids sentiment-driven investments
    By making you invest the same amount every month (or every quarter), the MUTUAL FUND SIP helps you avoid the common error of investing larger sums in bull markets (when the markets are at a high) and smaller sums in bear markets (when the markets are at a low)
  • Allows investments in small amounts
    With a monthly investment of as little as INR1,000*, you can easily include the MUTUAL FUND SIP within your monthly budget, without altering your financial plans significantly
  • Convenience
    You have the option of directly debiting your bank account for payments made towards the MUTUAL FUND SIP. All you need to do is give standing instructions once towards the same, and leave the rest to us

• What is a Mutual Fund SIP Request?

  A Mutual Fund SIP Request is an online instruction placed by you on https://ttweb.indiainfoline.com/trade/ authorising IIFL to place buy orders in your account as per the details specified by you.

• Can I place Mutual Fund SIP Request for Sell transactions?

  No. You can place SIP Requests for "buy" orders only under the Mutual Fund SIP facility.

• What is the difference between Mutual Fund SIP request and Mutual Fund SIP order?

  Mutual Fund SIP request is an authorization given by you to IIFL for placing buy orders as per your instructions mentioned in the request.
  The orders placed by IIFL as per your authorization vide the SIP request are called Mutual Fund SIP orders.

• Do I need to allocate funds for placing a Mutual Fund SIP Request?

  No. Mutual Fund SIP Request is merely an authorisation given to IIFL to place order in your account as per your instructions vide the SIP Request. Hence, funds are not required or used when you place Mutual Fund SIP Requests.
  Your funds would however be required and used at the time of placing the SIP orders.

• What is meant by "Frequency"? Please explain how does it work?

  Frequency means the time interval, after the start date, with which you wish SIP orders to be placed in your account. Depending on the frequency selected by you, IIFL will place SIP orders at the defined intervals after the start date for the total period specified by you. The First order will be placed on the start date specified by you and thereafter orders would be placed at the frequency for the total period as per your request.
  For example:,
  If you have placed a SIP request for investing Rs.5,000 in Reliance Banking Fund at a 'Monthly' frequency for a total period of 6 months with start date 10-04-2012, IIFL will place 6 orders for this SIP i.e. the first order being on the Start date and the other order in the next month after the start date on a monthly frequency. In this case the first SIP order for Rs. 5,000 in Reliance Banking Fund is placed by IIFL on 10-04-2012 , the next SIP order will be placed in the next month on 10-05-2012 and so on till the end date 10-09-2012.

• Do I need to log in on every SIP date to place the Mutual Fund SIP orders?

  No. Once you have placed your Mutual Fund SIP requests, IIFL will place the Mutual Fund SIP buy orders on your behalf. You need not login to your account to purchase the units.

• What is meant by Minimum and Maximum Period?

  'Minimum Period' is the period below which a Mutual Fund SIP request cannot be placed ie. you need to place a Mutual Fund SIP request for a period equal to or greater than the minimum period.
  The Order placement page displays the Minimum period and the Maximum period at the time of placing the SIP request.
  IIFL may change the Minimum period or the Maximum period from time to time without giving any prior notice.
  

• What are the types of Mutual Fund SIP request I can choose on indiainfoline.com and how do I indicate my choice?

  You may select only Amount based SIP request. You can indicate your choice by selecting the desired option under the field "SIP Amount" at the time of placing the Mutual Fund SIP request.

• What is "Amount" based Mutual Fund SIP?

  Amount based Mutual Fund SIP is a SIP type wherein a fixed amount (or approximately the same) is invested in your desired Mutual Fund Scheme at each frequency.
  In case of Amount based SIP, you need to specify the amount to be invested in the Mutual Fund Scheme at your desired frequency. The amount specified by you should be equal to or above the minimum amount defined by IIFL.

• How can I invest through Commodity SIP?

  To start investing through Commodity SIP there are 2 options
  
  1. Through TT Web : You will have to follow 5 easy steps as mentioned below:
  

  • Login to your TT web trading account on https://ttweb.indiainfoline.com/trade/
  • Enter Client ID » Password » Product Equity » Submit
  • Click on the tab Market » Mutual Fund SIP
  • Fill in the required details, accept the Terms & Conditions
  • Click on 'Submit'

  2. Through TT exe : You will have to follow 5 easy steps as mentioned below:
  

  • Login to your TT exe. trading account.
  • Enter Client ID » Password » Submit
  • Click on the tab SIP » Orders » Mutual Fund SIP
  • Fill in the required details, accept the Terms & Conditions
  • Click on 'Submit'

• What is "Mutual Fund SIP Registration Book"? What are the details available on the Mutual Fund SIP Request book?

  The "Mutual Fund SIP Registration Book" on the site is a page which displays the details of the SIP requests placed by you under the Mutual Fund SIP product. You can view the Mutual Fund SIP Registration book by visiting Mutual Fund SIP Registration Book link under the Holding page on the Mutual Fund segment. This book will provide you the details like the SIP reference no., stock name, quantity or amount, frequency, total period, start date, next SIP date, end date etc.

• What is "SIP Order book" link ? What are the details available on the 'SIP order book' link?

  The "SIP order book" link on the holding page under Mutual Fund segment is a link which displays all your ongoing Mutual Fund SIP requests . This link will provide you with details of the SIP order executed like the date,SIP transaction no.,stock name,SIP type, quantity or amount, status, SIP start date, SIP end date,next SIP date etc.

• Can I place Mutual Fund SIP request in any Mutual Fund Scheme?

  Mutual Fund SIP requests can be placed only in select Mutual Fund which are available on BSE StarMF/ MFSS scheme master.
  IIFL may include or exclude any Mutual Fund Schemes from the list at any time without any prior intimation.

• Can I place Mutual Fund SIP Request at any time during the day?

  Yes. You may place Mutual Fund SIP Request at any time during the day and even post market hours.

• Can I place Mutual Fund SIP Request through CallNTrade?

  Currently this facility is not available.

• How many Mutual Fund SIP Requests can I place in a day? Is there a restriction on the number of Mutual Fund Schemes in which Mutual Fund SIP can be placed by a client?

  You can place multiple Mutual Fund SIP Requests in a day for different Mutual Fund Schemes or for the same Mutual Fund

• When would IIFL place my Mutual Fund SIP orders ?

  When placing a Mutual Fund SIP request, you are required to select a "start date" from when Mutual Fund SIP order placement will commence. IIFL will place the order from the start date selected by you as per your request. The start date should be atleast T+1 from the date of placing the Mutual Fund SIP request in case of ledger and T+30 in case of SIP through Bank.
  Thereafter, the orders would be placed on the basis of the frequency and the total period chosen by you in your Mutual Fund SIP Request.
  The orders would be placed on these dates provided they are trading days. In case the frequency dates fall on Trading holidays, then the orders would be placed by IIFL on the subsequent trading day

• Is there a possibility that my entire SIP order may not be executed at the exchange?

  Yes. IIFL is merely your agent for placing orders as per the instructions given by you under the facility. IIFL does not have any role to play in the execution of trades after the orders have been placed. Trade execution takes place at the exchange platform as per the order matching rules of the exchange. Thus there is a possibilty that orders may not be executed at all.

• At what price will my Mutual Fund SIP orders be placed and where can I see details of the same?

  You can view the details of all successfully placed SIP orders in your account in the normal Mutual Fund SIP order book.

• How do I differentiate between SIP orders and lumpsum orders in the order book?

  Mutual Fund SIP orders and lumpsum order books details are visible from 2 different reports.

• I have forgotten to allocate enough funds for my Mutual Fund SIP order. Is my order liable to be rejected?

  In case of SIP through ledger ,IIFL will place the order only after checking that sufficient clear funds are available in your Mutual Fund ledger in case of SIP . In case the clear funds in your Mutual Fund ledger are insufficient to place your Mutual Fund SIP order, the entire Mutual Fund SIP order will not fail.

• Where can I view the SIP order placement date for my SIP requests?

  You can view your order placement date in the Mutual Fund SIP Registration book under the column 'Holding'.

• Can I cancel a SIP request?

  Yes. You can cancel an On-going SIP request at any time before IIFL has initiated order placement on the order placement date .
  Currently You can cancel your SIP request by putting a e-mail on iiflmfipo@indiainfoline.com along with SIP registration details. But soon you can cancel your SIP request by visiting the Mutual Fund SIP registration book under the Mutual Fund holding page of your online trading account.
  Once you cancel a SIP Request, all future orders to be placed against such SIP Request no. would stand cancelled.

• Is the any brokerage/ advisory fees on Mutual Fund SIP transactions?

  No, there is no brokerage/advisory fees for Mutual Fund SIP transactions.But Rs. 10 per installment will be charged over and above normal brokerage for executing the SIP Transaction.

• Can I sell units which I have bought through Mutual Fund SIP ?

  Yes. Units bought in your demat account through Mutual Fund SIP are at par . You can therefore sell/ otherwise deal in such units at anytime as per your requirement.