SIP is now a household name among Indian savers. Time now to take it to the next level – time now to put a purpose behind every SIP – time now for Freedom SIP, says Amar Shah, who believes that every SIP going forward should be a Freedom SIP – a bundled goal based SIP-SWP combo that will fill the void of salary credits hitting your account with unfailing regularity when you cease to earn.
Freedom SIP is attracting large ticket SIPs from 35-40 year olds and the median tenure of 15 years that is being selected is signaling an expected retirement age of 50-55 for this cohort. Not only are these SIPs much larger ticket in size (5x larger than normal SIPs), they are also much stickier through market volatility due to the emotional connect with the purpose behind starting them.
This is a hi-touch proposition as it requires explanation, scenario building and making a plan before a Freedom SIP can be commenced. This is a proposition that feeds directly into today’s 35-40 year old executives’ FIRE (financial independence / retire early) yearnings. This is a proposition where the effort of explaining and planning is handsomely compensated by large ticket SIPs that last for years. This, in other words, is a proposition best suited for MFDs rather than any other distribution channel.
The proposition offers 4 different combo options of source and target funds from the ICICI Pru MF fund range, to cater to diverse investor and advisor needs.