Variable Transfer Plan

What is VTP - Variable Transfer Plan or VTP in mutual fund is a smart investment facility whereby the investor puts the lump-sum investment in a source mutual fund scheme (usually a low volatility scheme) and transfers variable amounts at regular intervals (determined by the investor) to a target scheme (usually a high volatility scheme) based on market movements.

How does VTP work?

VTP is essentially a dynamic version of Systematic Transfer Plan (STP). In STP, you transfer fixed amounts from the source scheme to the target scheme. A VTP works like STP in rising markets i.e. if the Net Asset Value (NAV) of the target scheme is higher than the applicable NAV of the previous instalment, then VTP amount will be the same (like STP). However, in VTP you transfer higher amounts in falling markets i.e. if the Net Asset Value (NAV) of the target scheme is lower than the applicable NAV of the previous instalment, then VTP amount will be increased. The objective in a Variable Transfer Plan is to invest more in falling market so that you get a bigger advantage of Rupee Cost Averaging.

Benefits of VTP

The VTP is an upgraded version of STP. It provides you the flexibility of investing more at lower prices (NAVs) / falling markets, so that you can get a bigger advantage of Rupee Cost Averaging. VTP can be more advantageous than STP in highly volatile markets.

Click here, https://www.miraeassetmf.co.in/mutual-fund-facilities/mirae-asset-variable-transfer-plan, to know more about VTP.

Trigger Investment Plan

What is Trigger Investment Plan - Trigger Investment Plan (TRIP) is a smart investment facility, whereby investors puts the lump-sum investment in a source mutual fund scheme (usually a low volatility scheme) and transfers certain specified percentages of their investment in the source scheme to the target scheme (usually a high volatility scheme) at different market levels. You can choose what percentage to transfer from source to target scheme at specified market levels. In other words, TRIP facility provides the opportunity of timing the market.

How does TRIP work?

You can set investment triggers based on closing values of S&P BSE Sensex. In the event of the occurrence of the trigger a percentage of your investment in the source scheme will be transferred to the target scheme. Triggers are set off when the Sensex rises above or falls below the levels set by the investor. The table below shows how you can set up TRIP at different index levels (figures shown in the table are purely illustrative).

Disclaimer: Numbers are purely illustrative for investor awareness purposes only. The index levels and percentages should not be construed as investment recommendation. You should consult with your financial advisor before investing.

Benefits of TRIP

TRIP is essentially a series of switches determined by market levels. It reduces the risk of investing in lump sum amounts in highly volatile markets, by letting you invest at different levels chosen by you. Trigger Investment Plan also allows you to time the market, without having to spend the time and effort in tracking the market on a daily basis.

Click here, https://www.miraeassetmf.co.in/mutual-fund-facilities/mirae-asset-trigger-investment-plan, to know more about TRIP.

Group Investment Plan

Group Investment Plan (GRIP) is a plan for companies to enable their employees to start investing through Systematic Investment Plan (SIP) in select open ended mutual fund schemes of Mirae Asset Mutual Funds. In Mirae asset group investment plan, investments are made by deducting an amount from the salary of the employee and invested through SIP. Using GRIP companies can help their employees in their retirement planning.

How does GRIP work?

Under this plan, the employee authorizes the company to deduct a fixed amount from their monthly salary and invest it in the selected scheme of Mirae Asset MF. The employer collects the money from the employee and invests it in the selected scheme. The employer will provide details of the participating employee (e.g. KYC, bank details etc) and contribution details to the fund house. Dividends (if applicable) and redemption proceeds will be credited directly to the employee’s bank account.

Benefits of GRIP

Through GRIP companies can help in the financial well being of their employees. Traditional long term savings like Employee Provident Fund (EPF) may not be sufficient to meet the retirement needs of the employees given longer retired life and inflation. SIP investments through GRIP can help employees create wealth for their long term financial goals.