What is Dynamic SIP?
Dynamic Mutual Funds have an investment objective of giving optimum results during both the fall and rise of the market.
Why Invest in Dynamic SIP?
- Buy when the share market is low and sell when high
- Get better returns than your regular SIP
- Automatically split your money in fixed income debt funds and share market-linked equity funds based on relative market valuations
What is CashRich?
CashRich is a venture funded startup with nearly 200,000+ users. The company was selected by the Government of Maharashtra as one of the top innovative fintech startups and awarded a financial grant. CashRich was started with a vision to provide high-quality wealth management services using a convenient Android and iPhone app. The CashRich app provides a simple and intuitive user interface with powerful algorithms running in the background. CashRich app provides personalised options based on the user's profile and financial goals.
Why Invest with CashRich?
Hear it from Our Customers
Dynamic SIP is a great feature but difficult to understand as it is a new concept and not available in other Indian mutual fund apps. You will need 5-6 months to understand the importance of the Dynamic SIP process. When market went down around 15-20% around October 2018, my normal SIPs were in loss but Dynamic SIP was up 10% as it also had fixed income investment.
Amazing app! Good concept of Dynamic SIP. The COVID crash was a good time to understand how this process helps to get more returns. Was able to invest more automatically in April 2020. Some of those investments have doubled in 1 year!
What is the difference between SIP and Dynamic SIP?
When you make an investment in SIP, 100% of it goes into the market.
1) What Dynamic SIP does for you?
- Invest more when markets are down – Fetch more UNITS
- Provide Emergency fund, if required, without affecting Equity investments
- Earn better over a Normal SIP
2) How Dynamic SIP works?
When you make an investment in Dynamic SIP, it will go into fixed income instruments & share market investments based on the market conditions.
For e.g. For example, in Jan 2020 when SENSEX was very high, Dynamic SIP allocated Rs. 1000 (10%) to share market and Rs. 9000 to fixed income (liquid funds) for a total SIP of Rs. 10,000/month. Similarly, in Feb 2020 an allocation of 15% was done. In March 2020, when the market crashed due to corona, the Dynamic SIP allocated 70% to share market due to relatively lower valuations.
Why should I invest in Dynamic SIPs?
Dynamic SIPs do not get affected as much as Normal SIPs during Volatility. The Debt-Equity allocation is based on various market factors which helps improve the overall performance of our investments.
Why is the minimum recommended investment amount Rs.10,000?
Rs.10,000 is the minimum recommended investment amount for Dynamic SIPs as it would give significant returns over time. For you to reap the benefits of investment, Rs.10,000 is a good amount to start with.
What is the risk factor?
All mutual funds and other investments are subject to market rates.
Can I withdraw or stop my investment anytime?
Yes, you can withdraw or stop your investment anytime. It is also easy to do so as there is no lock-in system in place. You have complete freedom to pause or stop your Dynamic SIP fund anytime you wish to.
How is Dynamic SIP better than FD?
Dynamic SIP’s are better when compared to Fixed Deposits because:
- The flexibility of investment is high
- You get the advantage of diversification
- Better tax benefits
- You get higher returns on investment
The CashRich team led by Sougata and Hiren focuses on customer support. CashRich has an in-app chat support system that helps to provide the best customer service. The team has decades of investment experience and have seen different market cycles. Dynamic SIP is a result of understanding how markets work over a period of time and how investors behave during extreme bull or bear market. Automating the investment transactions via Dynamic SIP is the best way to behave right in financial markets.