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Building Wealth, One Step at a Time: The Magic of Systematic Investment Plan

SIP stands for Systematic Investment Plan; it is one of the modes of investment in Mutual Fund Schemes.

SIP is an investment of specific amount into schemes for a specific period of time at regular frequency.

It is similar to recurring deposit in the Bank or other financial institutions. It allows the investor to buy the units at regular interval without worrying about the market volatility.

  • What is the Benefit of SIP?

    SIP inculcates disciplined investment and allows taking part in the stock market without trying to time the market.

    SIP gives the benefit of cost of averaging and power of compounding.

    What is the different frequency of SIP investment in Mutual Fund schemes?

    An investor may start SIP on Daily, Monthly, Quarterly and Annually in all eligible Equity & Hybrid schemes of LIC MF.

    FAQS of Daily SIP

  • Daily SIP

    • What is Daily SIP?
      Like any other frequency of SIP, AMC also provides Daily SIP. In Daily SIP investors will have the option to choose any day to start SIP.

    • How long it takes to register Daily SIP?
      Daily SIP will be registered after 30 days from the date of submission of SIP application form.

    • What is The Minimum Daily SIP?

    • The minimum Daily SIP period is 1 month. In case the end date is not specified, the Fund will continue SIP till it receives termination notice from the investor or till the time instructions mentioned in SIP Registration Form, whichever is earlier.

    • What is the minimum investment amount in Daily SIP?
      The minimum investment amount can be different in different asset management companies. It can be as low as ₹. 300 per day.

  • Process to Register Daily SIP

    • What is the process to get Daily SIP registered?
      The process is same as of other SIP registration. Investors must fill the SIP registration form along with NACH form and submit it at respective Mutual Fund office

    • Can Daily SIP be registered online also?
      Yes, Daily SIP can be registered online as well as offline.

    • What are the documents required for Daily SIP?
      Scheme Application form along with SIP registration form will have to be submitted. First time investors will need to submit PAN card and Aadhaar Card along with CKYC form while registering Daily SIP.

    • Redemption

    • Redemption is the return of investor’s investment value which is depend upon the market.

    • The redemption of an investment may generate a capital gain or loss, and the taxation of capital gains is reduced by capital losses recognized in the same year.

    • Capital gains and losses are recognized on both fixedincome investments and mutual fund shares.

    • The redemption process can be directly credited in investor’s bank account within 10 working days.

    • Nominee

    • Investors opt for nominee while investing in mutual fund schemes.

    • Nominee may be any person or firm known to the investors

    • Nominee may not be the ultimate beneficiary of the investment value, but they are the custodian of the units in case of demise of the unit holder.

    • Switch

    • Switch is nothing but exiting from one mutual fund scheme and investing in some other mutual fund scheme.

    • Redemption will be considered from source scheme and investment will be considered in target schemes.

    • Transmission of Units.


    Transmission of Mutual fund unit is nothing but transfer of unit from investor to nominee in case of investors demise. To complete the hassle-free transfer of units following are the documents require: -

    • Letter from claimant nominee/s to the AMC/ Mutual Fund requesting for transmission of units.

    • Death Certificate/s in original or photocopy duly notarized or attested by gazette officer or a bank manager*

    • Bank Account Details of the new first unit holder (nominee) as per specified format along with attestation by a bank branch manager* and cancelled cheque or bank statement bearing the account details and account holder's name.

    • KYC of the claimant(s)/(nominee)

“Visit here https://licmf.info/KYCredressal to learn more about KYC requirements, SEBI Registered Mutual Funds and Grievance redressal.”

Disclaimer: The views expressed herein are based on internal data, publicly available information and other sources believed to be reliable. Any calculations made are approximations, meant as guidelines only, which you must confirm before relying on them. The information contained in this document is for general purposes only. The document is given in summary form and does not purport to be complete. The document does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. The information / data herein alone are not sufficient and should not be used for the development or implementation of an investment strategy. The statements contained herein are based on our current views and involve known and unknown risk and uncertainties that could cause actual results, performance, or event to differ materially from those expressed or implied in such statements. Past performance may or may not be sustained in the future. LIC Mutual Fund Asset Management Ltd. / LIC Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investment made in the scheme(s). Neither LIC Mutual Fund Asset Management Ltd. and LIC Mutual Fund (the fund) nor any person connected with them, accepts any liability arising from the use of this document. The recipients before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein.

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.

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