Sundaram cuts expense ratio on Select Debt

Chennai: Sundaram Mutual, the city-based mutual fund, has reduced the expense ratios on its Sundaram Select Debt Fund across different maturity plans. The fund, which closed its initial public offering last month, has garnered a corpus of Rs 53 crore across various plans.

Sundaram Select Debt is an open-ended income scheme, offering continuous sale and repurchases of units. The new expense ratio for short-term, three-year, five-year and long-term asset plans will be 0.65 per cent per annum as against the earlier proposed rate of 1.3 per cent for the short term plan and 1.3 per cent for the other three plans.

In respect of the combined asset plan, the expense ratio has been brought down to 1.25 per cent from 1.7 per cent proposed earlier. Following the reduction, under the various plans, Sundaram Select Debt is one among the lowest in terms of expense ratios across income funds.

About the lowering of the expense ratio of the new fund, Sundaram Mutual managing director T P Raman says: Given that Sundaram Select Debt is targeted at knowledgeable investors institutional and high-networth individuals who can be accessed without resorting to heavy advertising or marketing expenses, we have effected a reduction in expense ratios.