Chennai: Sundaram Mutual has decided to withdraw the exit load on its Sundaram Bond Saver, a debt plan for investments over Rs 5 lakh. The fund so far had an exit load of 0.25 per cent (if the investment were to redeem in three months). The new structure would be applicable on all fresh investments made till 31 December 2002.
This move comes close on the heels of the fund's decision to reduce the expense ratios across all plans of the newly launched Sundaram Select Debt.
Asset Management Company managing director T P Raman says: ''Two years ago, low volumes in the debt markets meant that redemptions needed to be checked by means of an exit load. The subsequent dramatic improvement in volumes have seen most funds reduce, or even do away with the exit load.''
With this move, Sundaram Mutual has two no-load medium-term income funds in its product portfolio.