by Sachin Murdeshwar
Mumbai : Samco Securities limited, a Mumbai-based fintech start-up and one of India’s fastest growing Discount Brokers introduces a new and superior investment system, ‘SmartSIP’ by Rank MF. The recently launched Rank MF platform (www.rankmf.com) is a mutual fund research and
investment platform with the objective of helping investors solve one of the biggest problems in Mutual Fund investing i.e. selection of the correct schemes out of a wide plethora of 3000 schemes available.
Rank MF’s SmartSIP is a revolutionary new order type for investing in Mutual Funds which maximizes returns. It automatically 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.
“In recent times SIP has been gaining popularity among Indian MF investors, with the launch of RankMF’s SmartSIP, investors can give a big boost to their mutual fund returns with far lower risks a win-win combination to generate higher absolute returns than normal SIP” commented Mr. Jimeet Modi, Founder and CEO, Samco Securities. “SmartSIP offers a completely new way of investing for retail investors to generate superior returns by buying low and selling high which hitherto was only available to HNIs and Institutional Investors. Thus, it leads to larger realizable value of invested corpus as compared to corpus value of the SIP investments. Therefore, we
recommend our investors to get smarter, #UpgradetoSmartSIP,” he further added.
Commenting on the occasion, Mr. Omkeshwar Singh, Head-RankMF said, “Traditional SIPs involve investing a fixed amount of money in a mutual fund scheme at the same date every month. This is done irrespective of the level of the markets and the valuations at which the market is trading. Whereas RankMF’s SmartSIP system can make up to 8% additional returns year after year compared to the traditional SIP. 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 3 modes – SmartSIP, SmartSIP Plus and the SIP Plus modes.”
RankMF is now democratizing these intelligent systems of investing for retail investors by disrupting the age old and sub-optimal SIP investment technique with a far superior alternative – SmartSIP. The SmartSIP order is built on the principle of Margin of Safety, a concept widely referred to as the most important one by the most successful investors of all time Mr. Warren Buffett.
Warren Buffett said, “The three most important words in investing are Margin Of Safety”.
SmartSIP order is a simple order type pegged with 2 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, 100 being the average level of margin of safety. So, in simple words, it follows the principle 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.
RankMF SmartSIP is a massive upgrade to traditional way of SIP investing as it has the potential to generate significantly higher returns with correspondingly lower risk. It is now available for over 350 + regular equity schemes. The table below would give a comparison of traditional SIP on one of India’s most famous equity fund scheme with RankMF SmartSIP
