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Learn » Using FundsIndia » Using value-added features » Portfolio SIP

Portfolio SIP

Description

The Portfolio SIP is very similar to a regular SIP - it involves an ECS mandate, and can invest in multiple schemes in one go. However, the distinction is that Portfolio SIP allows investors to construct an asset proportioned set of holdings that they can invest
as a single portfolio.

Advantages

As a mutual fund investment platform, FundsIndia offers two significant advantages - investors can invest in any fund from across 35 different� fund houses in one single place, and they can group them into convenient portfolios that are meaningful to them. For example, a FundsIndia portfolio could contain� a large-cap scheme from HDFC Mutual fund, a mid-cap scheme from ICICI Prudential mutual fund, and a debt fund from Franklin Templeton. This grouping of funds in one place could constitute an investment vehicle that is targetted towards fulfilling a particular financial goal for the investor.

Portfolio SIP takes this concept and applies it to systematic investing. An investor could choose a well-diversified set of schemes for a long term financial goal. The portfolio could be designed to invest 50% large cap sector, 30% in mid-cap sector, 10% in debt, and 10% in gold. This portfolio would yield a good return (if the fund chosen are good), over a ten year period. If all these holdings are held in a single FundsIndia portfolio, and the investor does an SIP into this portfolio (as opposed into individual schemes), the investor would have the convenience of visualizing the approach to their financial goal in much easier terms.Portfolio Analysis

At FundsIndia, the 'Portfolio Analysis' link at the portfolio level further enables the investor in this regard - to track the growth of a portfolio and the distance to a financial goal.

When to use

As seen above, the Portfolio SIP is ideally suited for goal-oriented investing using a diversified portfolio. Investors who want to visualize their investments as purpose-driven vehicles of growth towards a target can use the Portfolio SIP concept effectively.

How to setup

1. Login to your account, and click on 'Mutual funds' from the top bar
2. Select 'SIP setup' from the left menu
3. Click on 'Add a Portfolio SIP' on the Portfolio SIP section
4. In the next page, first, you will be asked to select the investor whose name the folio will be on.
5. You will then be asked to name the portfolio - for example, if you are building this portfolio for your child's education, you can call it the 'Education portfolio'
6. After that, you can select the number of installments for this SIP - this refers to the number of months the SIP is scheduled to run. Typically investors choose anywhere between 12 months (1 year) to 120 months (10 years).
7. Next, you would need to specify the total amount of money to be invested on a monthly basis in this portfolio (you can later specify the percentage allocations to different schemes).
8. Next, you will be asked to specify the bank account to use for the debits.
9. Then you can choose one or more schemes and the amount of money per month you want to invest in each of these schemes. You can also specify the monthly date of investment for each of these schemes. Importantly, you will need to specify the percentage of money from your total ETF investments to go into every scheme in your portfolio.
10. You will also be required to specify an initial amount of investment you are comfortable making in the particular scheme to create the portfolio SIP.
11. In this page, you can also choose whether you want FundsIndia to send you the ECS mandate form for your signature, or if you would like to send it yourself.
12. If you choose to send the form yourself (faster to process), you can select that option and hit 'Confirm'. Your ECS form will be generated and be made available in the 'Downloads' section of your account.
13. If you choose to request FundsIndia to send the form, we will do so at the end of the business day to your registered address.
14.In the next screen, you will be taken to your netbanking system to do so (please see note below for information about this initial payment).
15. That's it, the Portfolio SIP setup in FundsIndia is complete!

Monthly process

Similar to the regular SIP, the monthly process required for Portfolio SIP is minimum to none. The ECS mandate will get registered and the debits/investments will commence and continue through the tenure of the SIP.

The investments will be maintained in a separate portfolio in the investor's FundsIndia account. The investor would do well to set the target for the portfolio and monitor the growth of the investment on a monthly basis to see if they are staying on target towards the goal.