Sundaram Mutual has announced the launch of Systematic Investment Plans (SIPs) in Sundaram Money Fund, its open-ended liquid scheme. The fund house had also launched the instant redemption facility in the fund earlier this year. SIPs are available in the growth option for both regular and direct plans of the fund, on transactions made through the Sundaram Mutual website, branches, and RTA.
The facility would be available from November 13. Users can use NACH/OTM to set up Weekly, Monthly or Quarterly SIPs, said the fund house. Weekly SIPs will be processed on Wednesdays, monthly SIPs on any day of the month and Quarterly SIPs on any day of the quarter beginning January, April, July, and October. The minimum SIP amount is Rs 1,000 and in multiples of Re 1 thereafter.
Commenting on the release of the new feature, Mr. Sunil Subramaniam, Managing Director, Sundaram Mutual, said, “Savings and current accounts are often used to park surplus funds for unplanned expenses, but liquid funds score over them as they can give you potentially higher returns due to ‘disintermediation’ and ‘friendlier capital gains taxation.”
“Sundaram Money Fund, already equipped with 24*7, 365 days instant redemption, is now a power-packed tool that allows you to set up SIPs for your surplus, ensuring that your hard-earned money is put to better use regularly.
The need to manually transfer funds for your short-term goals, emergencies, etc. has now been eliminated as you can automate periodic additions to your investments and stay on track to building your corpus. This is one more step in Sundaram Mutual’s endeavour to add value to its core retail franchise,” he added