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Fund Times: UTI MF to Merge Schemes, ING MF to Give Up the Word 'Optimix'

Fund Times is a weekly report on developments in the Indian mutual fund industry.

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Divyansh Awasthi| 13-02-12E-mail Article to a Friend
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Divyansh Awasthi is a Senior Content Writer with Morningstar. He would like to hear from you, but cannot give financial advice.

Fundamental changes in schemes

UTI Mutual Fund will merge S&P CNX Nifty UTI Notional Depository Receipt (SUNDER) and UTI-Master Index Fund with UTI-Nifty Index Fund from March 14, 2012. Hence, existing unit holders of UTI SUNDER and UTI-Master Index Fund who are not in agreement with the merger may exit from these funds without paying any exit load from February 13 to March 14, 2012.

ING Mutual Fund has announced to delete the word ‘OPTIMIX’ from the name of all multi manager schemes with effect from March 21, 2012. It has further said that the change of name of the schemes will not affect their fundamental attributes, including features, investment strategy, investment pattern, fees and expenses, type, investment objective or terms of issue. But investors who wish to exit can do so without paying any exit load from February 20, 2012 to March 20, 2012.

IDBI Mutual Fund has increased the face value of IDBI Ultra Short-term Fund from Rs 10 to Rs 1,000 from February 10, 2012.

HDFC MF launches new STP facility

HDFC Mutual Fund will launch HDFC Swing STP, an expansion of its STP facility, from February 21, 2012. The difference between this and a usual Systematic Transfer Plan (STP) would be that the Swing STP will try to achieve the Target Market Value which can be more or less than the lumpsum invested in debt scheme. So, every time, it transfers the amount from one scheme to another (must be growth plan) based on the difference between Target Market Value and Actual Market Value of current holdings. The minimum investment amount must be Rs 12,000 while the minimum installment amount would be Rs 1,000 for weekly, monthly and Rs 3,000 for quarterly for availing this option. This option also gives the benefit of Reverse Transfer. If the Actual Market Value of current holdings is more than Target Market Value, it will transfer the difference from equity to debt scheme in order to maintain Target Market Value.

Changes in exit load

ICICI Prudential Mutual Fund has begun charging an exit load of 0.50% under ICICI Prudential Long Term Plan if units are redeemed or switched out up to 3 months from the date of allotment. The revised exit load structure is effective from February 7, 2012.

IDFC Mutual Fund has begun charging an exit load of 0.60% under IDFC Super Saver Income Medium Term from February 6, 2012 if units are redeemed or switched out within 9 months from the date of allotment.

Dividends declared

HDFC Mutual Fund has declared dividend under HDFC Long Term Advantage and HDFC Premier Multi-Cap Fund. The quantum of dividend is Rs 4 per unit and Rs 1.50 per unit for HDFC Long Term Advantage Fund and HDFC Premier Multi-Cap Fund respectively with the record date set as February 9, 2012.

IDFC Mutual Fund has declared dividend under the dividend option of aggressive, conservative and moderate plans of IDFC Asset Allocation Fund of Fund Plan A and IDFC Arbitrage Plus Fund. The quantum of dividend is Rs 0.06 per unit for aggressive plan, Rs 0.02 per unit for conservative plan, Rs 0.04 per unit for moderate plan and Rs 0.02 per unit for Arbitrage Plus Fund with the record date set as February 8, 2012.

Birla Sun Life Mutual Fund has declared dividend under Birla Sun Life Dividend Yield Plus and Birla Sun Life 95 Fund. The quantum of dividend will be Rs 0.50 per unit for Birla Sun Life Dividend Yield Plus and Rs 5 per unit for Birla Sun Life 95 Fund with the record date set as February 13, 2012.

Tata Mutual Fund had declared dividend under Tata Balanced Fund. The quantum of dividend will be Rs 3 per unit with the record date set as February 15, 2012.

ING Mutual Fund has declared dividend under ING Optimix Financial Planning Fund - Cautious Plan. The quantum of dividend will be Rs 0.08809 per unit with the record date set as February 13, 2012.

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