L&T Mutual Fund announced the launch of Daily Investment Plan (DIP), a product add-on that offers Investors the opportunity to transfer a fixed amount on a daily basis to the eligible open ended Equity Schemes of L&T Mutual Fund with effect from March 5, 2010
Under this Plan the Investor will be making one time investment in L&T Liquid Fund – Regular Plan – Cumulative Option and will be daily transferred systematically to the chosen Equity Scheme of L&T Mutual Fund. The daily investment in the equity Schemes enables Investors to get the benefits of the fluctuation in the equity markets.
Mr. Sanjay Sinha, CEO, L&T Mutual Fund said, “Daily Investment Plan is an attractive option for the investors as it gives the freedom to put in as little as Rs. 50 on a daily basis in an eligible Equity Scheme. This facility is designed to help the investors in coping with the market volatility and take the advantage of rupee cost averaging.”
Advantages of Daily Investment Plan
This hassle free investing option does not require a bank mandate to start the plan. Daily Investment Plan starts from the date of receipt of a duly completed DIP Form vis-à-vis normal Systematic Investment Plan (SIP) which generally requires 1 month to start. There is no need to time the market since it provides benefits of Rupee Cost averaging. Investor’s money remains active and this ensures disciplined investment.
The transfers shall be done on business days of the Equity Schemes only, and will continue so long as there is balance in L&T Liquid Fund – Regular Plan - Cumulative Option. However, if the balance falls below Rs. 50/-, the entire balance will be transferred to the Equity Scheme where Investor has invested.
The AMC reserves the right to discontinue the above Plan including change in the terms and conditions.
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Unit holders are advised to take note of the above changes. Please read Scheme Information Document, Statement of Additional Information & Key Information Memorandum of L&T Mutual Fund as amended from time to time. All other terms and conditions for the above Scheme(s) remain unchanged.
Statutory Details: L&T Mutual Fund has been established as a trust under the Indian Trust Act, 1882 by L&T Finance Limited (liability restricted to the seed corpus of Rs. 1 lakh) with L&T Mutual Fund Trustee Limited as the Trustee Company and L&T Investment Management Limited as the Investment Manager.
Risk Factors: All investments in mutual funds and securities are subject to market risks’ and the NAV of the Schemes of the Fund may go up or down depending upon the factors and forces affecting the securities market. Investment in mutual fund units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of principal. Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the Schemes. The Sponsor is not responsible or liable for any loss resulting from the operation of the Schemes beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund. The names of the Schemes/Plans/Mutual Fund do not in any manner indicate either the quality of the Schemes or its future prospects and returns; and are only the names of the Schemes/Plans. There can be no assurance that the objectives of the Schemes/Plans/Mutual Fund will be achieved. Schemes specific risk factors: Investment in the Schemes shall be subject to various risks including but not limited to risk associated with: Investment in Equity and Equity related Instruments & Bonds such as Performance Risk, Credit Risk, Reinvestment Risk, Interest Rate Risk, Investment in Derivatives, Securitised Debt, etc. Please read the Scheme Information Document and Statement of Additional Information carefully before investing.
Investment objective and classification: L&T Opportunities Fund (an Open Ended Growth Fund): The Scheme will invest mainly to generate long term capital appreciation from a diversified portfolio of equity and equity related securities. The fund will invest in a universe of stocks, which will be identified using fundamental analysis. The fund will invest in a portfolio of both value and growth stocks. The strategy will be to build up diversified portfolio of quality stocks, with medium to long term potential. L&T Hedged Equity Fund (an Open Ended Equity Scheme): To generate long term capital appreciation by investing in equity, equity related and derivative instruments. The fund seeks to minimize risk by use of hedging instruments such as index and stock derivative instruments. The aim is to generate returns with a lower volatility. L&T Midcap Fund (an open-ended equity scheme): To generate capital appreciation by investing primarily in midcap stocks. The scheme will invest primarily in companies whose market capitalization falls between the highest and the lowest constituent of the CNX Midcap Index. L&T Growth Fund (an open ended growth fund): To generate long term capital appreciation income through investment in equity and equity related instruments; the secondary objective is to generate some current income and distribute dividend. L&T Multi-Cap Fund (an open ended equity scheme): To provide long term capital appreciation by investing in a well-diversified portfolio of equity & equity related instruments across all ranges of market capitalization. L&T Contra Fund (an open-ended equity scheme): To generate capital appreciation by investing in equity and equity related instruments by using a 'contrarian strategy'. Contrarian investing refers to buying into fundamentally sound scripts which have underperformed / not performed to their full potential in their recent past. L&T Global Advantage Fund (an open ended equity scheme): To provide long term capital appreciation and/or income distribution by investing predominantly in equity/equity related instruments of Indian companies with export competitiveness and Indian companies which have or which are expanding their business in global markets. L&T Liquid Fund (an open ended high liquidity income fund): To generate reasonable returns while maintaining safety and providing the investor superior liquidity. To achieve this objective, investments will be predominantly made in a well-diversified and highly liquid portfolio of money market instruments, government securities and corporate debt.
Load Structure: For the above mentioned Equity Schemes : Entry Load – Nil. Exit Load - 1% if redeemed ? 1 year; Nil - if redeemed > 1 year. For L&T Liquid Fund – Entry and Exit Load – Nil.
Terms of Issue: Units of the Schemes are being offered at NAV based prices, subject to the prevailing loads. The AMC calculates and publishes NAVs and offers for sale, redemption and switch outs, units of the Schemes on all Business Days, at the Applicable NAV of the Schemes. Scheme Information Document, Statement of Additional Information, Key Information Memorandum and Application Forms are available at AMC Branches / Mutual Fund website at www.lntmf.com / Investor Service Centers / Distributors.