NEW DELHI: Neo-banking and financial services platform, Jupiter, has entered the investment space with its first offering – zero-commission direct mutual fund investments with no-penalty systematic investment plan (SIP).
The no-penalty SIP feature is a first in the Indian industry. Banks typically charge between ₹250 and ₹750 as a penalty each time a SIP auto-pay mandate fails due to insufficient balance in a bank account. The no-penalty SIP has been built to auto-skip any such charges. If a user’s Jupiter bank balance is running low, their SIP mandate is automatically skipped.
According to the platform, all it takes to set up an SIP is a single swipe. If the user would like to skip their SIP payment for the month, or cancel the SIP completely, that, too, can be done with just a swipe.
Jupiter added that investing in direct mutual funds allows users to save up to 1.5% in commission fees every year, which would have otherwise been paid out as commission for regular mutual funds.
Prithvi Raj Tejavath, business head of investments at Jupiter, said, “We believe that being disciplined with your SIPs are a great way for young investors to build wealth, and with just one comprehensive platform for banking and investing, Jupiter had an opportunity to slash down any penalties on missed SIPs due to low balance in your linked bank account. Our No-Penalty SIP auto-skips when your balance is running low, so you’re never charged for faltering on your Mutual Fund investments.”
Moreover, should a consumer choose to invest before 2PM on working days, they can also get the NAV (Net Asset Value), which is shown on the Jupiter app. All they have to do is download the app, and look for the “Investments” tab on the app home screen to open an investment account with the platform.
The feature is currently available to people who have mutual fund investment accounts already. In a few weeks, everyone who’s completely new to mutual fund investments would also be able to open their investment accounts on Jupiter.