The SmartSIP order is available in 3 modes – SmartSIP, SmartSIP Plus and the SIP Plus modes
Samco Securities, a Mumbai-based fintech startup and discount brokerage firm August 21 introduced an investment system, ‘SmartSIP’ by RankMF.
The recently-launched RankMF platform is a mutual fund research and investment platform.
RankMF’s SmartSIP 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.
Under this facility, the system signals whether an investor should continue with the SIP in the equity scheme, jump a SIP or double his SIP in a month.
The SmartSIP order is available in three modes – SmartSIP, SmartSIP Plus and the SIP Plus modes.
The SmartSIP order is built on the principle of the margin of safety, a concept widely referred to as the most important one by the most successful investors of all time Warren Buffett.
SmartSIP is a simple order type pegged with two mutual fund schemes – one leg is the equity scheme and the other leg is a liquid scheme.
It works as a multi-leg composite order, where based on the Margin of Safety Index (MosDexTM) of the equity scheme, automatic adjustments are made between the equity schemes and the liquid scheme.
The values of the MosDex will range from 0 – 200, with 100 as the average level of margin of safety.
This value averaging mode of investing with SmartSIP is far superior to the dollar cost average mode of investing with traditional SIP.