The various types of Triggers available to the Unit holder are:< /p>
a. Event-based Triggers: Unit holder can also set triggers based on the occurrence of a particular external event that affects the value of investment. For example,
b. Time based Triggers: Time based triggers are actioned on the day and /or date opted by the investor. For e.g. If investor has opted particular day or date trigger for redeeming specified amount to buy some gift for his/her relative’s birthday, a trigger could be set based on the date as requested by the Unit holder or Investor can give a redemption request before a specific date - 25th Wedding Anniversary, retirement date, three years from date of trigger or son/daughter reaches the age of 21.
A Trigger will activate a transaction / alert when the event selected for has reached the value greater than/ equal to the specified particular value i.e. Trigger Point.
Eg: Mr. Z bought 5000 units at NAV of 11.00. If Mr. Z wants to switch all his units when the NAV reaches 15.00, he has to keep track of the NAV daily and then send a switch request within a stipulated time period for effecting the switch at the NAV of the intended day.
However, instead of keeping a track of the NAV everyday, Mr.ZA can set a Trigger: To switch all units when NAV is 13 or more. In this case, the AMC will keep track on behalf of Mr. Z and switch his units on the day when the NAV reaches 13 or more. Thus Trigger is useful in financial planning.
Get In Touch
Take small steps in financial planning to achieve big dreams! Start your investment journey today!