Fund Houses Change Exit Loads

Fund Times is a weekly report on developments in the Indian mutual fund industry
By Divyansh Awasthi |  06-10-14 | 
 
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Divyansh Awasthi is an Investment Analyst with Morningstar. He would like to hear from you, but cannot give financial advice.

Changes in exit load and dividend declared

Reliance Mutual Fund will begin charging an exit load of 1% under Reliance Floating Rate Fund-Short Term Plan from October 10, 2014, if units are redeemed within 6 months. From the same date, the fund house will introduce an exit load of 0.50% under Reliance Medium Term Fund if units are redeemed within 1 month from allotment.

UTI Mutual Fund has begun charging an exit load of 1% under UTI India Lifestyle Fund, UTI Pharma & Healthcare Fund, UTI Energy Fund, UTI Transportation & Logistics Fund and UTI Multi Cap Fund, if units are redeemed within 548 days. Further, it has begun charging an exit load of 1% under UTI MNC Fund, if units are redeemed within 730 days from allotment. Both changes are effective from October 1, 2014.

Birla Sun Life Mutual Fund will revise the exit load of the following schemes from October 1, 2014: Birla Sun Life Dynamic Bond Fund (1% for redemption within 365 days); Birla Sun Life Short Term Opportunities Fund, Birla Sun Life MIP II-Savings 5 Plan and Birla Sun Life Monthly Income (1.5% for redemption within 365 days and 0.5% if redeemed between 365 days to 540 days); Birla Sun Life Income Plus (1% for redemption within 365 days); Birla Sun Life MIP II-Wealth 25 Plan and Birla Sun Life MIP (2% for redemption within 365 days; 1.5% if redeemed between 365 days to 730 days and 1% if redeemed between 731 days to 1095 days); and Birla Sun Life Enhanced Arbitrage Fund (0.5% for redemption within 90 days).

Axis Mutual Fund has changed the exit load structure of the following schemes from October 1, 2014: Under Axis Focused 25 Fund, 2% will be charged for redemptions within 2 years; under Axis Dynamic Bond Fund, 1% will be charged for redemption within 3 years; under Axis Triple Advantage Fund, 3% will be charged for redemption within 1 year, 2% for redemption between 1 year and 2 years and 2% for redemption between 2 years and 3 years; under Axis Income Fund, 0.50% will be charged for redemption within 3 months.

Tata Mutual Fund has changed exit load of the following schemes from October 1, 2014. Tata Ethical Fund has begun charging a load of 1% if units are redeemed within 540 days. Tata Short Term Bond Fund has begun charging a load of 0.50% if units are redeemed within 90 days.

Indiabulls Mutual Fund will begin charging an exit load of 3% under Indiabulls Income Fund from October 7, 2014 for units redeemed within 1 year, 2% for redemption within 2 years and 1% for redemption within 3 years.

Deutsche Mutual Fund will begin charging an exit load of 1% under DWS Investment Opportunity Fund from October 8, 2014 if units are redeemed / switched out within 1 year of allotment.

Birla Sun Life Mutual Fund declared dividend under regular plan-dividend option and direct plan-dividend option of Birla Sun Life Index Fund. The quantum of dividend is Rs 6.00 per unit with the record date set as October 7, 2014.

Change in key personnel

IDBI Mutual Fund informed that Anil Dhawan, Head - Debt Research and Fund Manager - Fixed Income has been appointed as the Chief Financial Officer (CFO) of IDBI AMC from September 29, 2014. Further, he has been relieved from his other aforementioned responsibilities.

Peerless Mutual Fund informed that Ramesh Rachuri has been appointed as the Head - Fixed Income from September 29, 2014. He is aged 44 years and holds B.Com, PGDM (IIM, Indore) as his educational qualification. Further, Amit Nigam has been appointed as the Head - Equities, from October 1, 2014. He is aged 39 years and holds B.E. (Mechanical), M.B.A. as his educational qualification.

BNP Paribas Mutual Fund informed that Shridhar Iyer has ceased to be the Investor Relations Officer and Key Personnel of AMC. Accordingly, Allwyn D'Silva Monteiro has been appointed as Investor Relations Officer from October 1, 2014.

Change in offering

Birla Sun Life Mutual Fund changed the maximum amount per lump sum to Rs 25 cr per investor per day across all subscription transactions, against the previous Rs 50 lakhs under Birla Sun Life Short Term Opportunities Fund and Birla Sun Life Medium Term Plan from October 1, 2014.

Axis Mutual Fund has informed that from October 1, 2014, Systematic Investment Purchase (SIP) and Systematic Transfer Plan (STP) facility will be available under Axis Enhanced Arbitrage Fund. The minimum amount for SIP installment will be Rs 1,000 for monthly frequency and Rs 12,000 for yearly frequency. And the minimum amount under STP facility will be Rs 1,000 under daily, weekly, fortnightly and monthly frequency and Rs 3,000 under quarterly frequency.

Tata Mutual Fund will introduce growth option under Tata Tax Saving Fund from October 13, 2014. The default option will be growth and it will be available under Plan A and Direct Plan. The growth option will start at NAV of Rs 10 per unit.

BNP Paribas Mutual Fund revised the minimum application amount under BNP Paribas Monthly Income Plan to Rs 1,000 under growth option, monthly and quarterly dividend option. The fund house also revised the minimum additional amount to Rs 500 for the scheme, against the previous Rs 1,000. Both changes are in effect from October 1, 2014.

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