Sundaram Mutual to head towards their new trajectory, a power-packed tool, allowing its customers to set up Systematic Investment Plans (SIPs) for their surplus. They aim at assuring that the hard-earned money of their customers is invested into better use.
The SIPs have been launched in their open-ended liquid scheme following their instant redemption facility that has already been launched in the fund earlier this year. Currently, SIPs are made available in the growth option for regular and direct plans, buying through an advisor, or distributor (intermediary) comes under the regular plan, and buying directly from mutual fund companies comes under the direct plan of mutual funds.
The Systematic Investment Plan has been implemented since November 13 2020 through the Sundaram Mutual website, branches ad RTA (Registrar or Transfer Agents)
Usually, savings and current account are often used to make surplus funds to cover unplanned expenses, but liquid funds are far ahead of them because they are potential enough to give the customer a higher return and the reason for this is mainly ‘disintermediation’ and ‘friendlier capital gain taxation’, commented Mr. Sunil Subramaniam, Managing Director.
Further he added that with the release of SIPs feature on the Sundaram Mutual, the Mutual Fund has successfully equipped themselves with 24*7 instant redemption in all 365 days.
Based on the decision that has already been taken, weekly SIP will be processed on Wednesdays, for monthly SIPs any day of the month is preferred and any day of quarter beginning from January, April, July, and October can be chosen for processing quarterly SIPs. The minimum SIP amount is fixed to be Rs.1000 and in multiples of Re 1, thereafter. Customers can use NACH ( National Automated Clearing House)/OTM (One Time Mandates), where the user authorize their bank to execute debits to his bank account up to a certain limit based on the request received.
Now it is possible to automate periodic additions to the investment and continues maximizing the corpus by eliminating the need o transfer funds for short goals and emergencies, manually. This step taken by Sundaram Mutual was regarded as their effort to add value to the retail franchise.