Frequently Asked Questions

  • What is SmartSIP?

    SmartSIP is revolutionary new order type for investing in Mutual Funds.

    A SmartSIP automatically follows the rule of Buying Low and Selling High instead of a regular SIP which buys units even when markets are high. In a SmartSIP order, when the market prices are expensive, money is invested in low risk liquid funds and when the market prices are cheap, more money is invested in equity funds.

  • How does the SmartSIP work?
    • If the margin of safety is low then the Monthly Installment amount will be invested in Liquid fund instead of Equity Fund.
    • If the margin of safety is moderate then the Monthly Installment amount will be invested in the selected Equity Fund.
    • If the margin of safety is high then the Monthly Installment amount will be invested in the selected Equity Fund and also a portion of liquid fund (if any) will be switched to the selected Equity Scheme.
    • If the margin of safety is very high then the Monthly Installment amount will be invested in the selected Equity Fund and also all units of liquid fund (if any) will be switched to the selected Equity Scheme .
    • Low MosDex Value = Expensive markets = Liquid / Debt Scheme

      High MosDex Value = Inexpensive markets = Investor Chosen Equity Scheme .

      Get Higher returns while also maintaining the discipline of SIPs via SmartSIP.

      For Detailed understanding of the order execution mandate, please refer our terms and conditions page.

  • What are the benefits of SmartSIP?

    A SmartSIP order is much superior than a regular SIP on account of the following:

    • Higher Returns
      • Higher returns as compared to the conventional 70:30 Equity Debt SIP and also the only 100% Equity SIP mode
    • Higher Realisable Value of the invested Corpus
      • The realisable value of invested corpus is much higher as compared to corpus value of the SIP investments
    • Lower Risk
      • At the times when markets are expensive, instead of buying the expensive equity units, liquid units are bought which leads to lower risk
  • Why mandate is mandatory of SmartSIP?

    A SmartSIP follows the same discipline of the SIP with respect to amount and frequency, therefore it is mandatory to have mandate / auto debit facilities.

    Note: The SmartSIP Installments will only be triggered once the SmartSIP Mandate is registered and approved. First order today facility is not available with SmartSIP.

  • If I can start regular SIP with Rs. 500, why should I have to have Rs. 5000 Installments of SmartSIP?

    SmartSIP is a Simple order with two legs – Investor Chosen Equity scheme and ICICI Prudential liquid fund. Investment in the either schemes and rebalances from liquid to equity and vice versa are made based on the MosDex value of the Equity Scheme. Most schemes have minimum transaction limits for additional purchases/redemptions due to which the minimum installment size is kept at Rs. 5000.

  • I am an existing customer of RankMF and I also have my mandate approved and a SIP is running, can I start SmartSIP instantaneously?

    The current mandate is registered for SIP and there is a separate Mandate required for SmartSIP , therefore we request you to kindly execute a SmartSIP order and follow the process to create SmartSIP Mandate.

  • What happens if the mandate debit instruction is rejected, will by SmartSIP stop?

    SmartSIP shall not stop if mandate debit instruction is rejected. In case of a rejection, your instalment amount shall be debited from your SAMCO Ledger account (if adequate funds are available) and your SmartSIP order shall be processed. In case of inadequacy of funds in your ledger account, the transaction for that month shall be skipped and the same shall be attempted in the subsequent month.

  • When will the money in my bank account be debited and how much?

    The money will be debited 2 working days prior to the SmartSIP transaction day. In case of SmartSIP the money debited will be that of the installment amount. In case of SmartSIP+ or SIP+ transactions, the twice the amount of money shall be debited from your bank account.

    Note : Kindly keep your account adequately funded 2 working days in advance of SmartSIP installment date.

  • What is the difference between SmartSIP and SmartSIP+?

    SmartSIP has 2 options , with top up and without top up . SmartSIP+ is the variant with the top up option. When the margin of safety index is very high , then an additional amount equivalent to the SmartSIP installment amount is invested for superior returns to as compared to the SmartSIP.

    SmartSIP is like a regular SIP presumes that the SIP installment amount each month shall remain the same. So, if the regular SIP amount is Rs. 10000 for 60 months over 5 years i.e. a total investment of Rs. 6,00,000, the amount under SmartSIP would also be equal to Rs. 6,00,000 i.e. Rs. 10,000 * 60 months.

    In the SmartSIP+ variant, additional top up amounts are drawn from your account depending on the Margin of Safety. For e.g. if the Margin of Safety was 106 for a particular month on SIP day, instead of Rs. 5,000 which would otherwise be drawn, Rs. 10,000 is drawn for that month.

  • What is the difference between SIP and SIP+?

    SIP has 2 options, with top up and without top up . SIP+ is with top up option. When the Margin of Safety index is very high , then over an above the normal SIP amount,an amount equivalent to the SmartSIP installment amount is invested as an additional amount over an above the monthly instalment for superior returns to regular SIP

    In the SIP+ variant, no sell or skip transactions are made but only top up SIP transactions are undertaken in months where Margin of Safety is high. This is suitable for lock in schemes like ELSS schemes where sale transactions are not permitted on account of lock in period.