Sundaram Mutual recasts load structure
Kolkata: The Sundaram Mutual Fund has re-cast the load structure applicable to its equity schemes. Its Small and Medium Indian Leading Equities Fund, better known by its acronym, S.M.I.L.E., has been made an exception though, which sees a complete withdrawal of exit load for all investments.

The new structure also involves an entry load of 2.25 per cent for all investments less than Rs2 crore. Currently there is no entry load for equity,as well as balanced funds for investments less than or equal to Rs1 lakh, while an exit load of 2.25 per cent is applied for redemptions within 12 months from the date of investment.

For S.M.I.L.E., which maintains a diversified portfolio generally comprising small- and mid-cap companies, a fresh exit load structure will be introduced, Sundaram MF has informed its distributors. For applications equal to or more than Rs2 crore, a 2.25 per cent load will be charged if redemptions are taken within six months. For applications involving lower amounts, however, no exit load will be charged.

Amounts of more than Rs2 crore will not attract any load, either during entry or exit, in the case of all funds, except S.M.I.L.E. The funds that will be covered by the new system are Sundaram Growth, Select Focus, Select Midcap, Balanced, India Leadership and Tax Saver.

According to MF officials, the measures are "in line with the current market scenario", and will be formalised once the necessary approvals are in place. Meanwhile, distributors have been updated so that they can keep their clients informed.

THE tax-saving scheme, which does not charge any entry load for SIP (systematic investment plan) allocations, will from now on levy 2.25 per cent for all SIP investors. Also, an exit load (2.25 per cent) is currently charged for all redemptions within one year from the date of investment. This exit load will stand withdrawn, the MF has stated while referring to the three-year lock-in period warranted for equity-linked savings schemes (ELSS).

For all other equity and balanced funds, the zero-entry load on SIP allocations will continue. However, a 2.25 per cent exit load will be levied if investors move out before two years.
Back to News Review index page  

CCL Products to go ahead with FCCB issue
Hyderabad: The shareholders of CCL Products (India) Ltd, formerly known as Continental Coffee Ltd, have at their extraordinary general meeting held on Friday approved a resolution to raise funds to the tune of $20 million through the issue of foreign currency convertible bonds (FCCBs) with a right to retain excess subscription to the tune of $2 million.

The EGM has also approved a proposal to enhance the borrowing powers of the board of directors to Rs200 crore and has authorised the board to create charges on the immovable and movable properties of the company to the extent of new borrowing limits of the board.

Further, they have approved an increase in the authorised capital of the company to Rs20 crore, the company has informed the stock exchanges.
Back to News Review index page