SYSTEMATIC INVESTMENT PLAN (SIP)

What can you spend OMR 100 on?
  • A fancy dinner?
  • The best seats at the Royal Opera House Muscat?
  • A trip to Dubai?

Think bigger.

Set aside as little as OMR 100 every month from your paycheck towards your future with:
  • A Systematic Investment Plan (SIP) towards your goals
  • A portfolio with the chance to invest in Global and Local Markets
  • A dedicated Investment team to guide you

 
​Systematic investment plan (SIP) is an investment vehicle offered by mutual funds to investors, allowing you to invest small amounts periodically instead of large lump sum investments. The frequency of the investment is monthly through a fixed amount of money that is contributed by the investor and invested in specified securities.

  • A systematic investment plan (SIP) is an investment vehicle offered by mutual funds to investors, allowing you to invest small amounts periodically instead of large lump sum investments.
  • The frequency of the investment is monthly.
  • A fixed amount of money is contributed by the investor every month and is invested in specified securities.
  • The investor is allocated a number of units according to the current Net Asset value
  • Every time a sum is invested, more units are added to the investors account.
  • We protect our investors against speculation in volatile markets through a dollar cost averaging strategy.
  • As the investor gets more units when the price is low and fewer units when the price is high, in the long run, the average cost per unit is supposed to be lower.
  • SIP encourages disciplined investment, but is flexible in giving  with the investors the chance to  being able to stop investing in a plan anytime or in choosing to may choose to increase the investment amount.
  • SIP is usually recommended to retail investors who have a specific saving goal to achieve but do not have the resources to pursue the active investment route.
SegmentMinimum SIP amountFrequency
SadaraOMR 1,000Monthly
MazayaOMR 100Monthly
YouthOMR 100Monthly

​NBO offers two pricing structures for clients investing in SIPs:

Pricing Type One-Time, LifetimePay-As-You-Go
Description 100% of the first installment is charged as a one-time, lifetime plan set-up fee 3% of the monthly investment  is charged towards fees on each investment
Frequency Once Recurring
Benefits
  • Client pays the fee only once
  • Unlimited, Free Switch-Outs from the SIP into Standalone Mutual Fund's / Exchange Traded Funds

    Please note that Switch-Outs to Fixed Income Securities aren't permitted
  • Clients could suspend or cancel an existing plan without incurring 'sunk-fee' losses
  • Advantageous to clients planning to allocate large investment amounts across a shorter time frame
To  start investing towards your goals todaycomplete the application process, please visit your nearest a National Bank of Oman branch with the below documents. near you with the documents requested below and the rest will be taken care of by your Relationship Manager / Wealth Advisor at the bank.
  • Account Opening Form (if you are a new client of NBO)
  • SIP Subscription Form
  • Investment Account Agreement
  • Risk disclaimer for Mutual Funds
  • Risk Profile Questionnaire and Suitability Assessment
Terms and Conditions of the One-Time, Lifetime Fee Plan
  • The first payment is debited towards a One-Time, Lifetime Fee
  • A client may start multiple SIPs.
  • On each SIP, the first payment will be debited towards the One-Time Fee, Lifetime Fee.
  • The term ‘Lifetime’ applies at a plan-level and not at the account relationship level
  • The client is charged a One-Time, Life Time fee for each SIP activated under this fee structure.
  • This fee is not refunded if the client suspends or cancels the SIP after it commences
  • The client may not reduce the monthly payment after the SIP commences
  • The may, however, upsize the monthly payment after the SIP commences.
  • This incremental amount is charged as a One-Time, Life Time Fee towards this incremental SIP
Terms and Conditions of the Pay-As-You-Go Fee Plan
  • This is a recurring fee model and is effective as along as the monthly payments are made
  • The bank margin of 3% is included in the SIP amount.
  • A client may start multiple SIPs.
  • On each SIP amount, a bank margin of 3% will be debited towards the Pay-As-You-Go Fee.
  • The term ‘Pay-As-You-Go’ applies at a plan-level
  • The client is charged on a Pay-As-You-Go basis for each SIP chosen under this model.
  • The fees charged are not refunded if the client suspends or cancels the SIP after it commences
  • The client cannot reduce the monthly payment after the SIP commences
  • The client may, however, upsize the monthly payment after the SIP commences.
  • A bank margin of 3% is charged on this incremental amount towards the ‘Pay-As-You-Go’ fee structure.
1. What are Systematic Investment Plans (SIP)?
An SIP is an approach to invest small, fixed amounts at a specified frequency (usually monthly) into a pre-defined market portfolio to help an investor meet his or her – often long term – financial goals.

2. What are the features of SIP?
  • A fixed amount of money is auto debited from the client’s saving account each month on a predetermined date
  • The amount then funds a pre-defined market portfolio
  • The client will be allocated a certain number of units in accordance with the ongoing Net Asset Value or NAV
  • Each time a sum of money is invested, there will be more units added to the account of the investor

3. Is any Retail banking client of NBO eligible to subscribe for a SIP?
Yes

4. Can NBO staff invest through SIPs?
Yes. All employees of NBO, including contract staff, can invest in SIPs.

5. Can expatriates invest in SIPs?
Yes

6. Can an expatriate client continue the SIP even after leaving Oman?
The SIP continues as long as there are funds available in the account to be debited. An expat may fund his/her account, for continuity of the SIP plan, even after leaving Oman. Standard KYC checks are applicable on the client profile and source of funds to ensure continuity of banking services.

7. Can an investor start a SIP for his or her children?
Yes. The SIP may be started in the name of minors with the investor as a Guardian.

8. What is the minimum amount required to start a SIP?
Segment OMR per month
Sadara1,000
Mazaya 100 ​ ​
Youth
Staff

9. What is the frequency of the SIP payment?
Monthly 

10. Can a SIP be set up with a daily, quarterly or annual payment?
No

11. Can a SIP be cancelled after it is set up?
Yes

12. Are there any cancellation fees?
No

13. Can a SIP be suspended?
Yes

14. Is there a minimum age requirement for investing in SIPs?
No

15. Is there a maximum age requirement for investing in SIPs?
Yes. SIPs should not be marketed to client older than 65.

16. Can an investor reduce the monthly payment once the plan commences?
No

17. Can an investor increase the monthly payment once the plan commences?
Yes. The incremental amount will be charged in line with the investor’s existing fee structure.

18. Does a SIP have a lock-in period?
No. The investor is free to exit the plan at any point in time.

19. Can a client set up more than one SIP?
Yes. There is no limit on the number of SIPs. Each SIP Plan though will be charged a fee

20. Is a SIP capital protected?
No

21. Does a SIP guarantee returns?
No

22. Does the bank charge a fee to the client for investing in SIPs? 
Yes

23. What are the fee options that may be extended to a client?
An investor in SIP may be offered the following fee structures:
Pricing Type One-Time, LifetimePay-As-You-Go
Description 100% of the first installment is charged as a one-time, lifetime plan set-up fee 3% of the monthly installment is charged towards fees
Frequency Once

Recurring

Benefits
  • The Client pays a fee only once
  • Unlimited, Free Switch-Outs from the SIP into Standalone Mutual Fund's / Exchange Traded Funds

     Please note that Switch-Outs to Fixed Income Securities aren't permitted
  • Clients could suspend or cancel an existing plan without incurring 'sunk-fee' losses
  • Advantageous to clients planning to allocate large investment amounts across a shorter time frame

24. If an investor avails of a Pay-As-You-Go Fee Plan, is he or she charged a 3% on every monthly payment? 
Yes. This 3% charge applies to every SIP payment made until the last payment date. So that there is no doubt whatsoever, if an investor opts for a ten-year SIP payment plan, investing $3,000 every month, then he or she would be charged a 3% i.e., $90, every month on each of the 120 monthly payments.

25. Are there any cancellation or redemption charges?
No

26. Is the investor eligible for a full or partial refund of plan fees on plan redemption or cancellation?
No. Fees once charged will not be refunded.

27. Is an investor charged a penalty fee if a SIP payment is missed due to insufficient funds?
No

28. If an investor leaves Oman, is he or she eligible for a fee refund?
No. Fees once charged are not refunded. 

29. Can the client invest in a more than one mutual fund through a single SIP?
Yes. The client can invest in multiple mutual funds through a single SIP

30. Are there specific auto-debit dates for a SIP in a month?
Yes. The investor has a choice of three auto-debit dates: 1st, 15th and 30th 

31. What happens if one of these dates occur on a weekend or a national holiday?
The SIP payment is then processed on the next working date 

32. What is the minimum period for which a SIP must be set up?
1 month

33. What is the maximum period for which a SIP can be set up? 
9999 months 

34. Is there a limit to the number of switch-outs that can be done under the One-Time, Lifetime Fee Plan?
No

35. Which fee plan is best suited for clients in the age group of 0 – 55?
One-time Lifetime Fee Plan 

36. Which fee plan is best suited for clients in the age group of 55-65?
Pay-As-You-Go Fee Plan 

37. Can an investor start a SIP in Fixed Income Securities as well? 
No. A SIP is limited to investments in Mutual Funds only.

38. Can an investor who has availed of the One-Time Lifetime Fee Plan switch out holdings to a Bond? 
No

39. Can an investor who has availed of the One-Time Lifetime Fee Plan switch out holdings to any Mutual fund?
Yes. The mutual fund would need to be listed on the All Funds Platform though.

40. Can an investor change the allocation in a SIP once the plan commences?
No. But, the investor can create another SIP though with an allocation of choice. Alternatively, if the investor has availed of the One-Time, Lifetime Fee Plan, he or she may switch out units to any other Mutual Fund. This is subject to the target Mutual Fund being approved and listed for trade on the All Funds Platform.

41. Can an investor redeem his holdings from an ongoing SIP?
Yes

42. Does a redemption of holdings from an ongoing SIP affect the continuity of the plan?
No. The SIP continues:
  • Until the investor either cancels the plan or,
  • Until the plan completion date 
43. How many standing instructions are required for a SIP to function?
There are two SI’s that are required to be set up:
From Account To Account  Form
OMR Savings/Payroll  Account Foreign Currency Investment Account SI form, available at any branch
Foreign Currency Investment Account Market Portfolio SIP Form, available with the Wealth Advisor 

44. Can a special exchange rate be extended to the client for a SI set up on the OMR Savings/Payroll Account? 
Yes. A special exchange rate of 0.3855 can be set up for the client.

45. Is the SIP a completely automated product solution? 
Yes. There is no manual intervention required if there are no alterations to the plan. The SIP requires manual intervention only during the following stages of the plan:
  • Initial Setup
  • Cancellation
  • Upsize
  • Switch out of units 
46. Is there an after sales support process around SIPs?
Yes. The Wealth Advisor will share portfolio updates and keep an investor informed of all developments in the global financial markets. All aspects of portfolio review will be overseen by and is the sole responsibility of the Wealth Advisor.

47. Who is eligible to market SIPs?
All retail banking employees are eligible to introduce SIPs to eligible clients but are not permitted to conclude the sale. 

48. Who is responsible to conclude the sale of SIPs?
Only Wealth Advisors are permitted to conclude the sale of SIPs to qualified clients.

49. What is the revenue recognition approach for the One-time, Lifetime Fee Plan?
The first payment to the SIP will be charged as a One-Time Lifetime Fee. The employees involved in the Referral/Closure process are eligible for incentives on these revenues.

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