The Hindu Business Line : Changes in redemption payment

Unitholders of Franklin Templeton Mutual Fund will now receive redemption proceeds of equity, balanced, tax-saving and index funds three days from the date of receipt of the application for redemption, as against the current practice of one day.

This is because SEBI regulations now require all trades on stock exchanges to be settled only through the Clearing Corporation of the stock exchanges. The applicable NAV for redemption will continue to be that prevailing on the date of the receipt of the request.

PruICICI Mutual has also implemented this change in redemption payments. It has further clarified that in the case non-RBI centres, the redemption payments will take an additional three days over and above the regular three-day period.

Principal Mutual Fund has launched Principal Large Cap Fund. The fund will invest predominantly in stocks with a market capitalisation of more than Rs 3,500 crore. The criteria for market cap will be reviewed periodically. The offer closes on October 19.

Joining the club of tax-saving funds is Chola Tax Saver, the latest offering from Chola Mutual Fund. Investors in the fund will be able to avail of a tax deduction up to Rs 1 lakh under Sec 80C of the Income Tax Act.

The fund will not have a distinct mid-cap or large-cap focus, but a flexible investment strategy. The offer closes on October 26.

ING Vysya has introduced an exit load on all its equity and balanced funds. A load of 2.5 per cent will be charged on all investments in excess of Rs 10 crore made on or after September 23.

There have been a couple of changes in the fund management team at Kotak Mutual Fund.

Mr Sajit Pisharodi will be the fund manager of Kotak Global India, Kotak Technology, Kotak MNC and Kotak Income Plus, the last of which will also be managed by Mr Ritesh Jain. Mr Anand Shah will manage Kotak Midcap Fund.

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