Birla Mutual Fund has launched an open-ended cash fund - Birla Sweep Plan. The fund is open for initial offer from September 9th to September 17th. This is currently being offered to HSBC account holders.All initial expenses would be borne by the AMC.
Under the scheme, the bank account holder can enter into an arrangement with HSBC and sign up for this facility, whereby the excess funds lying in his current account above 10 lakhs (subject to it being a minimum of Rs.1 lac) will be automatically swept into the fund's account every evening. For every subsequent sweep, the sweep will take place only after the amount in the current account is more than Rs. 10 lacs by at least Rs. 1 lac. Funds would sweep back automatically in the investors' account as and when the investor needs them.
The Plan is particularly useful to small and medium enterprises, which do not have elaborate treasuries because of which they are unable to manage their daily cash flows efficiently. However, customers of HSBC Bank having average balances in excess of the Rs. 10 lacs in their bank current accounts are eligible to opt for this Plan.