Why are my recommended SIP values the same?
Every goal at Glide Invest will typically have 3 portfolios associated with it, matching the risk profiles on our system and the duration/tenure of the goals. Sometimes, the SIP values for the different portfolio recommendations will come out to be the same. This would happen because of any of the following reasons:
- Rounding up: We round up our SIP calculations to make it easier for distribution between the various funds in a portfolio. Now if the duration of the goals are small (typically under 3 years) and the expected returns of the portfolios are very close to each other, the rounding up calculation returns the same value. For example, a Rs. 1 Lakh goal for 1 year will return the same value for all the portfolios because the SIPs all round up to the name whole number.
- Meeting minimum scheme thresholds in a portfolio: Our portfolios contain multiple schemes. When you create a new goal, new folio numbers are created for each scheme. All schemes have a minimum investment value when invested in a new folio, which means that if an investment is made below that value in that particular scheme, the transaction will either fail with our partner BSE Star, or be rejected by the AMC. To prevent this, the minimum investment value of the whole portfolio is given priority over the rounded up cumulative SIP value, if the SIP value is below that threshold.
We are working towards improving our algorithms to provide better recommendations. On the other hand, we would strongly recommend you to reconsider either your targets and timelines, and possible increase one or both of them to get more variance in your SIPs.
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