The fund house informed this to its unitholders through a notice-cum-addendum. The Prosperity SIP facility will be effective from September 6.
Under the Prosperity SIP facility, an investor can register for a SIP (Systematic Investment Plan) cum SWP (Systematic Withdrawal Plan) for a specified duration. Post the completion of the SIP tenure, the accumulated cleared units will be switched out to the chosen target scheme (or remain in the same scheme). The SWP will be activated upon processing the switch in transaction.
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The Prosperity SIP facility will be available for all investors except minors. This facility will be allowed only under the growth option of the open-ended/hybrid schemes listed below:
ETMarkets.comThe fund house reserves the right to modify the list of eligible schemes from time to time. The Target Scheme is the scheme in which the lumpsum switch and Monthly SWP scheme shall be registered.
The SWP scheme can be different from the source scheme to process a Switch and the SWP. If the Target SWP scheme is not mentioned in the application, no switch will be processed and SWP will start from the scheme selected for SIP.
SIP can be registered in the eligible schemes for a fixed period of either 7, 10, 12, 15, 20, 25 or 30 years. The minimum tenure is 7 years, and the default tenure shall be 20 years when no tenure is selected. Prosperity SIP can be registered in a separate/new folio or an existing folio. Standalone Existing SIP registrations cannot be converted into Prosperity SIP registrations. The facility shall be registered only for MONTHLY frequency under the eligible schemes. The minimum SIP installment amount under Prosperity SIP shall be Rs 2,000 and in multiples of Re 1 thereafter.
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Prosperity SIP will be available on Physical, digital assets (Website and Mobile app) of Sundaram AMC &, Exchange Platforms of BSE and NSE under non-demat mode. Additional purchase/ switch-in will be allowed under the source scheme. All clear units will be switched to the target scheme on completion of Prosperity SIP tenure.
How will the Prosperity SIP facility work? On completion of the SIP tenure, the entire accumulated units in the Prosperity SIP facility of the respective scheme will be available for SWP. On completion of 15 days from the date of last SIP installment in source scheme, the entire amount representing accumulated clear units will be Switched into the investor’s chosen Target scheme. The switch will not happen if the target scheme is the same as the source scheme.
The notice cum addendum also mentioned that SIP Top up facility will be available in Exchange platform of BSE/NSE under Non-Demat Mode.