The Hindu Business Line : Sundaram Mutual rejigs load structure

SUNDARAM Mutual Fund has proposed to make a special case for its Small and Medium Indian Leading Equities Fund while re-casting the load structure applicable to its equity schemes.

The fund, better known by its acronym, S.M.I.L.E., has been made an exception in the new system characterised by a complete withdrawal of exit load for all investments. The new structure also involves an entry load of 2.25 per cent for all investments less than Rs 2 crore.

As things stand, there is no entry load for equity (as well as balanced) funds for investments less than or equal to Rs 1 lakh, while an exit load of 2.25 per cent is applied for redemptions within 12 months from the date of investment.

For S.M.I.L.E., which maintains a diversified portfolio generally comprising small- and mid-cap companies, a fresh exit load structure will be introduced, Sundaram MF has informed its distributors.

For applications equal to or more than Rs 2 crore, a 2.25 per cent load will be charged if redemptions are taken within six months. For applications involving lower amounts, however, no exit load will be charged.

Amounts of more than Rs 2 crore will not attract any load (neither during entry nor during exit) in the case of all funds - all except S.M.I.L.E. The funds that will be covered by the new system are Sundaram Growth, Select Focus, Select Midcap, Balanced, India Leadership and Tax Saver.

The measures, Mr Sanjay Santhanam, V-P - Marketing & Sales, has explained, are "in line with the current market scenario", and will be formalised once the necessary approvals are in place.

Meanwhile, distributors have been updated so that they can keep their clients informed.

Entry load on Tax Saving SIPs

THE tax-saving scheme in the Sundaram MF stable, which does not charge any entry load for SIP (systematic investment plan) allocations, will from now on levy 2.25 per cent for all SIP investors.

Also, an exit load (2.25 per cent) is currently charged for all redemptions within one year from the date of investment. This exit load will stand withdrawn, the MF has stated while referring to the three-year lock-in period warranted for equity-linked savings schemes (ELSS).

For all other equity and balanced funds, the zero-entry load on SIP allocations will continue. However, a 2.25 per cent exit load will be levied if investors move out before two years.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Sundaram Mutual rejigs load structure — S.M.I.L.E attracts 2.25 pc for exit

Bear domination

Sensex down 130 on bearish sentiment

Great Eastern on a voyage

Markets turn more dynamic

Outlook may turn positive for SBI, M&M

Bank, oil stocks decline

Panel questions open sky policy on airline IPO day