- If index PE between 17 and 22, SIP=Rs 5000 and RD=Rs 5000
- If index PE>22, SIP=Rs 0 (i.e. SIP stops) and RD=Rs 10,000
- If index 15<PE<17, SIP=Rs10,000 (i.e. SIP doubles) and RD=Rs 0
- If index PE<15, SIP=Rs 10,000 and RD=Rs 0; and Market Crash Fund (MCF) is utilized as follows – As soon as PE goes below 15, accumulated MCF is split into 3 parts. First part is deployed immediately and remaining two over the next two months.
|Correlation between Index PE & SIP+RD Amount (monthly basis)|
|Scenario 1 & 2 Comparison|
|PE Ratio of Index & Amount Accumulated in Market Crash Fund|