Ch.9 · Systematic Transactions — SIP, SWP, STP · medium

In a Flexi-SIP (also called Top-up SIP), what is the key feature that distinguishes it from a regular SIP?

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EXPLANATION

A Flexi or Top-up SIP allows the investor to increase the SIP amount by a fixed sum or percentage at predefined intervals (e.g., 10% annually). This aligns investments with income growth over time.

A.The investor can skip instalments without penalty

B.The SIP amount increases automatically at predetermined intervals [✓ Correct]

C.The investor receives bonus units instead of cash on SIP anniversary

D.Exit load is waived for all Flexi-SIP redemptions

EXPLANATION

A Flexi or Top-up SIP allows the investor to increase the SIP amount by a fixed sum or percentage at predefined intervals (e.g., 10% annually). This aligns investments with income growth over time.

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