Invesco Mutual Fund revises daily SIP rule: Instalments can now be debited on weekends, holidays

A daily frequency SIP lets an investor put in a fixed amount every day, rather than once a month or quarter. Under the existing rule, such an instalment was processed on business days only. If it fell on a non-business day, it was not carried forward to the next business day, which effectively meant no instalment was collected on days the market was shut.

Under the revised rule, instalments under the daily frequency SIP can be debited on every calendar day, including weekends and public holidays. However, an instalment debited on a weekend or a public holiday will still be processed on a business day.

If the funds are credited on a weekend or a public holiday, the transaction will be processed on the immediately succeeding business day, based on the time of credit received in the mutual fund’s bank account.

In effect, a daily SIP will now debit the investor’s account on every calendar day, but the units will be allotted only on a working day, since the money is invested once the fund house processes the transaction.

The fund house has announced the change through an addendum to the Scheme Information Documents (SIDs) and Key Information Memorandums (KIMs) of its schemes, and to the Statement of Additional Information (SAI) of the fund. These documents set out a scheme’s objective, investment strategy, risks and terms.

Necessary changes will be carried out at the relevant places in the SAI of the fund and the SIDs and KIMs of the schemes, as applicable. The revision applies to the daily frequency option under the SIP facility in eligible schemes. All other terms and conditions of the SAI, SIDs and KIMs will remain unchanged.

The addendum forms an integral part of the SAI of the fund and the SIDs and KIMs of the schemes, as amended from time to time, Invesco Mutual Fund said.