FundsIndia launches SIP that adapts to market

COIMBATORE: FundsIndia, an online retail investment platform, has announced the launch of ‘FundsIndia SmartSIP’, in association with Franklin Templeton AMC (Asset Management Company), for its customers. This service combines the discipline of SIP (systematic investment plan) along with dynamically managing the monthly SIP allocation to each fund based on market conditions.
SmartSIP would invest in an equity fund and a debt fund from the Franklin India stable every month. By default, the equity fund’s allocation would be 70% and the debt fund would receive 30%. However, allocation to the equity fund and the debt fund will dynamically change every month based on both market fundamentals and momentum factors.

“With SmartSIP, an investor can make smart allocations between equity and debt every month based on the signals we receive from a well-proven quantitative model,” said FundsIndia’s co-founder and COO Srikanth Meenakshi. “There’s no need to increase SIP amount or reduce it in order to benefit from dynamic allocation. This ensures that savings are disciplined and there is no compromise on reaching the desired goal,” he said.
“This dynamic model developed by experts shows back-tested capability of beating a regular 70:30 SIP by up to 2.6% CAGR over the long term,” said Vidya Bala, FundsIndia’s head of mutual fund research. “This is possible because the model seeks to reduce fresh equity allocation and increase debt allocation in a market turning expensive and increase equity allocation in correcting markets.”
“SmartSIP, a solution which offers a combination of market upside coupled with a potential downside risk limitation, will help to reassure investors to stay invested over longer timeframes,” said Sanjay Sapre, president, Franklin Templeton Investments. This service is available immediately in the FundsIndia platform with a minimum SIP investment of Rs 5,000 a month.