The Hindu Business Line : Bajaj Capital offers ‘entry load-free’ facility for investing in mutual funds

New Delhi, Feb. 18 Bajaj Capital, an investment advisory company, has launched a new product by the name ‘myWrap Account’, which is being touted as the country’s first ‘no entry load’ facility for investing in mutual funds through a mutual fund distribution house.

“This is like a PMS of mutual funds where investors would invest in a PMS and this PMS would invest in several mutual funds on behalf of the investors.

Because we are an institutional investor, we get access to institutional pricing and we are able to enter mutual funds on a no-load basis.

Even for a Rs 5 lakh upward investor, we are able to give no load investment solution in MFs,” Mr Rajiv Bajaj, Managing Director of Bajaj Capital, told Business Line here.

Product options

Mr Bajaj said that three product options are being provided in the ‘myWrap Account’—capital growth, high capital growth and all equity.

There is also the flexibility to shift from one option to the other at zero switching cost. Besides exit charges, there will be fees such as annual management fee of 1.6 per cent.

“The overall cost of investing is much less in the first year vis-À-vis retail option in an equity mutual fund through a distributor,” he said.

MyWrap Account is a joint initiative of Bajaj Capital and OptiMix, a division of ING Investment Management. “We have outsourced the portfolio management and technology part to OptiMix, which will implement the solution for us. Bajaj Capital will design the portfolio and give it to OptiMix.

Their fund manager will also add value. It’s a committee where we jointly decide the portfolio,” Mr Bajaj said.

SEBI had recently stipulated that there would be no entry load for investors directly approaching mutual fund houses.

“We have taken a cue from what SEBI had said as its end objective on the move to waive entry load, which is to reduce the cost of investing in mutual funds for investors. That has prompted us to launch the MyWrap account,” Mr Bajaj said.

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