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A simple approach to help you achieve your financial goals
A Systematic Investment Plan (SIP)1 is a disciplined way of investing, where you make regular investments
according to a set schedule you create. You often decide to start saving and investing regularly, but get
caught up in day-to-day activities and forget to make the investment. Systematic investing is a time-tested
discipline that makes it easy to invest automatically.
How does systematic investing work?
Once you identify the funds you want to invest in and the amount required to achieve your financial goals,
all you have to do is give us monthly or quarterly post-dated cheques for the amount you want to invest. We
will allot you fund units based on the NAV on the date of each transaction, which you will see posted to
your fund account.
Systematic investing, also known as rupee-cost averaging, can help put the power of compounding on your side.
Here we'll describe how you can pursue this strategy by setting up a Systematic Investment Plan for your
Franklin Templeton fund accounts. You can read more about rupee-cost averaging and compounding by clicking
them in the Relevant Links box to the right.
How to start a Systematic Investment Plan
It's easy to implement a plan. Send a letter to any of our Investor
Service Centres saying you'd like to start a Systematic Investment Plan. Include the following:
- Amount of each investment
- Investment frequency (monthly or quarterly)
- The date you want to start your first investment
- Enough post-dated cheques for one year/6 months
Each investment is then processed automatically, according to the details of the plan you've set up. Keep in mind
that rupee-cost averaging involves continuous investing, regardless of fluctuating prices.
- Templeton Mutual Fund will accept at least 12 cheques of Rs. 500 or more each OR at least 6 cheques of Rs. 1,000
or more each for any SIP investor. Under FT India Life Stage Fund of Funds/FT India Dynamic PE Ratio Fund of Funds, the mutual fund will accept 12
cheques of Rs. 2000 or more or a minimum of 6 cheques of Rs. 4000, or more for SIP investors.
(w.e.f. March 17, 2004).
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All the SIP cheques (except the
first one) must be uniformly dated either the 1st,
7th, 10th, 20th or 25th of a month. Investors can
invest at a Monthly or Quarterly interval by providing
post-dated cheques. All cheques should be for the
same amount.
The AMC reserves the right to discontinue the SIP in case of cheque return, and debit the cheque return
charges to the investors' account.
Making changes to your Systematic Investment Plan
You may want to change the amount or frequency of your plan sometime after it's underway. That's easy, too.
Just follow the same steps you took when starting the plan.
Footnotes
1.Systematic Investment Plan (SIP) facility
is available in the following schemes/plans: All plans of -
Franklin India Bluechip Fund (FIBCF), Templeton India Growth
Fund (TIGF), Franklin India Prima Plus (FIPP), Franklin India
Prima Fund (FIPF), Franklin India Taxshield (FIT), Franklin
India Index Fund (FIIF), Franklin Infotech Fund (FIF), Franklin
FMCG Fund (FFF), Franklin Pharma Fund (FPF), Franklin India
Opportunities Fund (FIOF), FT India Balanced Fund (FTIBF), Templeton
India Pension Plan (TIPP), Templeton India Children's Asset
Plan (TICAP); Growth plans of Templeton India Income Fund (TIIF),
Templeton India Income Builder Account (TIIBA), Templeton Monthly
Income Plan (TMIP)2, FT India Monthly Income Plan
(FTIMIP)2, Templeton India Government Securities
Fund (TGSF) and Long Term Plan of Templeton Floating Rate Income
Fund (TFIF).
2.An open end income scheme. Income is not assured, and is subject to the availability of distributable surplus.
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