This is really not very different from SIP. However things can go horribly wrong. The successive months' targets are based on investors' exalted expectation based on the promises made at the time of selling the scheme. More so if the fund manager performs badly ( and not the market) the investor ends up increasing his contribution month after month to a bad fund manager Alternatively, if the fund manager is good and the portfolio value is above expectation the investor ends up reducing his investment and gets penalized for his choice of an excellent fund manager. There are actually three variable: Fund manager performance Primary contribution Market performance These can be rolled in one for the simple example quoted but there is little value addition in this new method to hoodwink the investors by showing an elegantly simplistic example of investment. Best wishes Amit PS: I thought I should share the flaw in the fad purely for investor benefit. No offence meant
