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Chennai, Aug. 28

SUNDARAM Mutual Fund has raised the minimum level of investment required to qualify for a waiver on entry load on its equity schemes to Rs 25 lakh from the earlier level of Rs 25,000.

In May and June, the fund waived the entry load on its equity schemes (Sundaram Growth, Sundaram Select Focus and Sundaram Select Midcap) for investments above Rs 25,000. An entry load is an expense deducted from the investor's initial investment by a mutual fund, and Sundaram has set it at 2 per cent.

Detailing the reason for calibration in entry load structure, Mr T.P. Raman, Managing Director, said the waiver in June, triggered an interest in Sundaram's schemes among retail investors. Consequently, the corpus of the schemes has grown to a level that has attracted the interest of larger investors such as high net worth individuals.

A couple of other mutual funds such Kotak Mutual and HSBC have also waived entry loads for large investors.

Mr Raman also said that Sundaram Mutual plans to introduce a monthly income plan (MIP) shortly. At present, the fund is working on the offer document for the MIP that would have to be submitted to SEBI prior to the launch.

The proposed MIP launch would take place in backdrop of a pension scheme with assured returns launched recently by LIC. In response to a query, Mr Raman said the MIP would not be in the same league because returns would be determined by Sundaram Mutual's performance in the securities market _ up to 25 per cent of the MIP corpus could be invested in the equity market. They are "totally different," he added.

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