Target Investment Plan (TIP) is an innovative investment strategy that works similar to a Systematic Investment Plan (SIP) in terms of a regular periodic investment, but differs in the amount invested in each installment. The SIP is same amount every month, while in the TIP, the amount is different in each instalment.
This facility was first started by ICICI Securities in month of October 2011, The TIP is all about a goal-oriented approach to investing in mutual funds on its online broking platform, ICICIdirect.
You can start your TIP by setting a Target amount and expected rate of return over a period of time. The TIP is a goal-based investment approach where the investor can customise his investment according to his goal.
The monthly contribution in the TIP is determined by the current portfolio performance and the prevailing market conditions.
In TIP you start by setting a target amount and an expected growth rate over the period of achieving the target. The longer the period the better is the opportunity to achieve the desired target amount.