In order to encourage SWP culture in mutual funds among dividend plan investors, Sundaram Mutual Fund has removed exit loads on up to 25% of the total units by way of SWP per annum in most open end schemes.
The move has come after the government has removed DDT and moved tax burden directly onto investors. The government has also introduced 10% TDS on dividend income of over Rs.5000.
Sundaram Mutual Fund MD and CEO, Sunil Subramaniam said, “The recent budget has removed DDT and made dividends taxable in the hands of the investor. Hence, distributors should consider using SWPs as a more tax efficient option for investors to earn regular income from mutual funds. In order to reduce the cost burden on investors if they so choose, Sundaram Mutual is happy to announce the waiver of exit load from redemptions in many of our schemes up to 25% of the investment value per annum if done through SWP mode. In addition, we are also waiving the entire exit load, if consequent to the taxation change, investors wish to switch out of the dividend option into the growth option as also into any other scheme of Sundaram Mutual.”
The fund house will charge exit load of 1% if the redemption is beyond 25% of the total units within a year through SWP. For redemption other than SWP route, the fund house will continue to charge exit load of 1% within a year. There will be no load after a year.
