What is AMC SIP?
At Zerodha, we do not follow the conventional SIP model. All your orders are sent to the AMCs as lumpsum investment orders on your chosen SIP dates. This allowed us to offer clients more control & flexibility over their SIPs without any cumbersome documentation.
Some AMCs, due to the fund size exceeding optimal AUM values, stopped accepting fresh investments via lump sum orders. Because of this people who had existing investments in these schemes could not invest via Zerodha. For such schemes, we are introducing the AMC SIP, where your investment will be through an actual SIP order. This is presently available only on the Coin mobile app.
AMC SIP is currently available on 5 Mutual fund schemes -
- SBI small-cap mutual fund
- Reliance small-cap fund
- Mirae Emerging Bluechip fund
- ICICI Prudential Small Cap Fund
- DSP Small Cap Fund
- Only Monthly Installments are allowed in these SIPs.
- Currently, AMC SIP investment dates allowed are 1st, 5th, 10th & 15th. If you set your SIP to any other date, the order won't go through.
- If you start an SIP order on any of the allowed dates (1st, 5th, 10th & 15th) and set the SIP to go through on that same day, the order will be placed the next month. For example - If you start an SIP on 5th August and you want the SIP to go through on the 1st or 5th of every month, the first SIP order will be placed on 1st or 5th of September, depending on what you select. However, if you start an SIP on 5th August but you set the SIP to go through on 10th or 15th, your first SIP order will be placed on 10th or 15th of August, depending on what you select.
- If you intend to cancel your SIP, you should do it a minimum of 10 days before your SIP date. For example, if you have a SIP set on 1st of August and decide to not go through with it, you have to cancel the SIP on or before 21st July.
- Settlement-wise everything will remain the same. The funds required will be deducted from your trading account & the units will be credited to your DEMAT account.
- Unlike our normal SIP, which in case of insufficient funds on the SIP day, will be re-tried for the next 5 days, AMC SIP will send an order only on the next SIP date.
Attached below are screenshots on how to place an AMC SIP for your reference -
Note: - You will get an email confirmation along with the SIP registration no. from BSE - STAR MF (the order routing platform we use) for the AMC SIPs you place and cancel.