The success of the Bharti AXA Mutual Fund's daily investment plan (DIP), which went on to become an instant hit with investors, has encouraged L&T Mutual Fund too, to launch a similar add-on facility.
This facility would be available to investors from March 5, 2010. It enables an investor to transfer a particular amount on a day-to-day basis to several equity schemes offered by the fund house.
Under the plan, an investor would make a one-time investment in L&T’s Liquid Fund in its Regular Plan (Cumulative Option) from where it would be transferred daily into the chosen equity schemes.
Here, the equity schemes on offer are L&T Opportunities Fund, L&T Growth Fund, L&T Midcap Fund, L&T Multi-Cap Fund, L&T Hedged Equity Fund, L&T Contra Fund and L&T Global Advantage Fund.
While investors can reap the benefits of fluctuations in equity markets through this add-on, it also helps the latter in coping with market volatility.
Another advantage of such a plan is that unlike systematic investment plans (SIPs), which usually takes one month’s time to start, this one begins as soon as the investor fills up the DIP form.
No exit load would be applicable as far as L&T Liquid Fund is concerned. However, for the equity schemes on offer, one per cent exit load would be applicable if redeemed within one year, while no exit load would be applied if redeemed after a year.
|
Minimum Investment Amount |
In L&T Liquid Fund – Regular Plan - Cumulative Option: Minimum amount to be transferred to any of the eligible Equity Schemes listed below: Rs. 50/- and in multiples of Re 1/- thereafter. |
|
Equity Scheme Offered |
|
|
Default Options |
If investment Option (Cumulative/ Dividend) is not selected: Default Option will be Cumulative Option. Under Dividend Option, if the Dividend type (Reinvestment / Payout) is not selected: Default Option will be Reinvestment. |
|
Beginning of first DIP |
DIP will commence on the 7th day from the date of receipt of duly completed DIP form. For example: suppose DIP request is received on Monday before |
|
Change in amount |
If an investor wants to change the investment amount, a fresh request has to be submitted to AMC/ CAMS and this will be effected within 7 business days. |
|
Applicable loads |
The load charged under this Plan will be same as that of the respective Schemes, applicable at the time of registration of DIP. |
|
Forms to be filled By new investor By existing investor |
A. Fresh Application Form B. DIP form A. DIP form |
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
