Sundaram Mutual Fund has introduced instant withdrawal facility in its open end liquid fund, Sundaram Money Fund. With this, investors can redeem up to Rs.50000 per day irrespective of business day i.e. 24*7 throughout the year.
In a press release, Sunil Subramaniam, Managing Director, Sundaram Mutual said, “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. 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 instant redemption facility is currently available only for resident individuals in the growth plan 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. Sundaram Money Fund has no lock-in and no minimum balance requirements for users to avail this facility.
Dwijendra Srivastava – Chief Investment Officer, Fixed Income and Siddharth Chaudhary – Senior Fund Manager, Fixed Income manage this fund.
