HDFC Mutual Fund will introduce HDFC Flex systematic investment plan for investments under the growth option plan of open-ended equity and balanced funds, with effect from April 3, the mutual fund house said in an addendum.
Under this facility, unit holders can choose to make investment at predetermined intervals, wherein the installment amount will be set by a formula linked to the investment value.
The first instalment amount will be that fixed by investors. The next instalment will be higher than the fixed instalment amount set by an investor, or the amount derived by applying the formula.
The minimum instalment amount for monthly (MFLEX) and quarterly frequency (QFLEX) will be 500 rupees and in multiples of 100 rupees thereafter, and 1,500 rupees and in multiples of 100 rupees thereafter, respectively.
The minimum instalment value under HDFC TaxSaver and HDFC Long Term Advantage Fund for MFLEX will be 500 rupees and in multiples of 500 rupees thereafter, while that for the quarterly frequency FLEX will be 1,500 rupees and in multiples of 500 rupees thereafter.The instalment amount is capped at 100,000 rupees.
Investors can opt for three years, five years, six years, 10 years, 15 years and 20 years of tenure. In case of the tenure isn’t specified, a default tenure of five years and monthly frequency will be applicable.
The payment will be processed only through the National Automated Clearing House mode and can be done at any preferred date.The facility can be terminated by sending a written notice within 30 days, the fund house said.moneycontrol