Mahindra Manulife Mutual Fund introduces ‘Power SIP Facility’

Anthony Heredia, MD & CEO at Mahindra Manulife – “We understand that financial independence is a fundamental aspiration for individuals and families. With Power SIP facility, we have endeavored to create a comprehensive solution that not only facilitates wealth accumulation but also ensures a smooth transition into the withdrawal phase. Through systematic withdrawal plan (SWP), our customers may  enjoy a regular income stream while still benefiting from the potential growth of their investments.”

With this facility, investors may now plan their investment journey by registering to an SIP and SWP together in eligible schemes of the Fund for a specified duration. This facility is available in two options: Option A, where both SIP and SWP are registered in the same scheme, and Option B, where SIP and SWP can be registered in different eligible schemes.

The option A simplifies the process by allowing investors to choose the same scheme for both SIP and SWP. In this case, once the SIP tenure ends, the entire units accumulated via Power SIP facility becomes available for SWP, ensuring a seamless transition between investment and withdrawal phases. On the other hand, option B takes the customization up a notch further.

The facility involves four distinct stages to facilitate a smooth transition from SIP to SWP:

First Stage: Investors register for an SIP in the eligible source scheme(s) of their choice for a predetermined period ranging from 8 to 30 years, under  monthly frequency.

Second Stage: After completing the specified SIP tenure, 80% of the available  units accumulated through the facility  are switched to the selected target scheme chosen for SWP, based on the Applicable NAV at the end of 15 calendar days from the date of the last SIP instalment (or the next business day, if the switch day falls on a non-business day). The remaining 20% of the available units remain invested in the source scheme.

Third Stage: SWP instalments will be commenced from the target scheme from the month following the month of completion of the SIP tenure. The  SWP date will be same as the SIP date.

Fourth Stage: Upon completion of three years after the initial switch transaction (as mentioned in the Second Stage), the remaining 20% of the available  units accumulated through the facility shall be switched to the target scheme at the Applicable NAV on the date of the switchor the next business day if the switch day falls on a non-business day. This residual unit balance shall also be considered for processing monthly SWP instalments.