Sundaram Mutual announces instant redemption facility in Sundaram Money Fund

Sundaram Mutual has announced the launch of the instant redemption facility in its open-ended liquid scheme, Sundaram Money Fund. This will enable investors to redeem upto Rs 50,000/- per day instantly. This facility is available 24*7, 365 days a year, said a press release by the AMC.

This facility will be available for transactions made through the Sundaram Mutual website starting Monday. The fund house said that the redemptions will happen through IMPS mode and will get credited in the investor’s registered bank account within a few minutes of placing a valid request.

“Everyone uses savings and current accounts to park a significant amount of money for any urgent and unplanned expenses owing to the ease of access these accounts provide. But these accounts give you zero or very low interest rates. Very often we do not utilize these monies and they end up lying there for extended periods of time. Liquid funds on the other hand can give you potentially higher returns due to the advantage of ‘disintermediation’ and ‘taxation as capital gains’ especially on the money that you do not end up using! One disadvantage that Liquid funds carry is the time lag of a few days between putting in a redemption request with the mutual fund and getting the money in your bank account. The introduction of the ‘Instant Redemption Facility’ addresses this very issue and allows you to instantaneously access upto Rs 50,000/- per day 24/7, 365 days,” Sunil Subramaniam, Managing Director, Sundaram Mutual said.

This instant redemption facility is currently available only for resident individuals in the Growth Plan (Regular and Direct) of Sundaram Money Fund. Investors can redeem up to Rs 50,000/- or 90% of their portfolio value of their investment value per day, across folios under their PAN.

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“Furthermore, for salaried persons arranging to credit your salary into your liquid fund, ensures that all your surplus monies gets this advantage and facilitates switching into equity mutual funds with the same fund house with a simple switch or STP request without going through the formalities of registered a bank mandate etc. This is one more step in Sundaram Mutual’s endeavour to add value to its core retail franchise.” said Sunil Subramaniam.

Sundaram Money Fund is managed by Dwijendra Srivastava – Chief Investment Officer, Fixed Income and Siddharth Chaudhary – Senior Fund Manager, Fixed Income. The performance of the scheme is benchmarked against CRISIL Liquid Fund TRI.



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