Use SIP variants as portfolio diversifiers for better cost averaging

With systematic investment plans (SIPs) witnessing significant uptake for the past few years, distributors are launching new variants to get a pie. Recently, SAMCO Securities, which ventured into mutual fund distribution through its platform RankMF, launched Smart SIP. The variant decides on the SIP amount, based on the market valuations and a scheme’s portfolio. 

The investor starts with a fixed monthly SIP amount ranging between Rs 2,500 and Rs 100,000. Based on the market condition and the scheme’s portfolio, RankMF’s algorithm sends triggers. If the market is expensive, the trigger suggests the investor skips his SIP. If the market is significantly