Introduction
Automatic Investment Plan (AIP), also known as a fixed-amount periodical investment route offered by mutual funds, refers to an investment arrangement wherein an investor and the bank agree that, based on the investor's specified frequency and timing, a fixed amount will be used to purchase units of a specific open-end fund.
Application Procedure
Branch Visit: Clients need to visit an IB branch with their identification documents and bank card, complete the AIP application form, and facilitate the AIP setup.
Online Banking: Clients log in to IB's personal online banking portal (www.cib.com.cn) → Navigate to "Wealth Management" → "Fund Brokerage" → "AIP", select the desired fund, enter the AIP amount and investment frequency, and finalize the AIP setup.
Mobile Banking: Access the mobile app → Choose "Fund Brokerage" → "AIP", select the desired fund, input the AIP amount and investment frequency, and confirm the AIP setup.
Rules
1. Minimum AIP Amount
The starting amount for AIP is stipulated by the respective fund companies' announcements. Different products have varying AIP entry points, typically set at 100, 200, or 300 yuan.
2. AIP Frequency & Date Guidelines
Clients initiating the AIP can choose various investment cycles: daily, weekly, bi-weekly, monthly, quarterly, or annually.
For AIPs set on a monthly, quarterly, or yearly basis, the investment date must fall between the 1st and 28th (calendar days). For daily AIPs, there's no need to select a specific date. For weekly or bi-weekly AIPs, the investment date should fall between Monday and Friday.
If the AIP execution date coincides with a national holiday, the deduction will be deferred to the next working day. However, for daily AIPs, the deduction remains unchanged. For a single AIP mandate, if holiday-induced delays cause the deduction date to overlap with the agreed-upon deduction day, only one deduction will be executed on that day.
3. Risk Compatibility Requirement
Upon AIP registration, clients must ensure that their risk tolerance aligns with the risk rating of the product. Registrations are exclusively permitted for products that match the client's risk-bearing capacity.
Each AIP deduction necessitates a risk rating compatibility assessment. If the client's risk assessment becomes invalid or doesn't align with the risk rating of the intended investment product, the IB system will withhold deductions until the risk assessment is valid and aligns with the risk level of the chosen fund.
4. Insufficient Account Balance
Should there be an insufficient balance in the client's account on the specified SIP deduction date, the investment for that cycle will fail. However, by the next investment cycle's deduction date, if the client's account holds sufficient funds, the AIP may proceed.
5. AIP Invalidity
If reasons such as an inadequate account balance or mismatch between the client's risk assessment and the product's risk rating result in three consecutive AIP deduction failures, that particular AIP mandate becomes automatically invalid. To reactivate an invalid AIP, re-registration is required.
6. Can AIPs Continue if a Fund is in a Purchase Suspension Period?
This depends on individual fund company regulations. If a fund company's announcement allows AIPs to operate normally during a fund's purchase suspension period, then valid AIP deductions for said fund may continue throughout that suspension period.
Risk Disclosure
IB Statement: The information on this page is for investor reference only and does not constitute investment advice. Historical fund performance is not indicative of future results. All funds entail risks, and investors must proceed with caution.
Products sold on behalf are agency products, not IB wealth management products. As a distributor, IB does not assume responsibility for product investment, redemption, or risk management. The past performance of a product does not guarantee its future returns or its actual gains.