Stanchart Premier Equity Fund to re-open for Lumpsum Investments

Standard Chartered Mutual Fund has announced that the Stanchart Premier Equity Fund will re-open for Lumpsum Investments w.e.f 15/4/2008.

Standard Chartered Mutual Fund stopped accepting fresh subscriptions under Standard Chartered Premier Equity Fund from July 21, 2007 or in case the assets under management in the scheme reaches Rs.400 cr.

The Premier Equity Fund, had pre - fixed the amount of fund inflows to ensure that inflows do not exceed the quantum of investment ideas and only when the fund manager feels stocks are available at reasonable valuations. However investors who wish to apply through either a Systematic Investment Plans (SIP) or Systematic Transfer Plans(STP) can do so at any time i.e. even when the fund is not accepting fresh lumpsum subscriptions.

This restriction is on account of the fact that investor behavior is to invest when stock markets are rising and to withdraw when markets are in decline. This forces the fund manager to abandon the basic tenet of investing which is - buy low and sell high - and do exactly the opposite.

On account of the limited size and a firm control on future inflows, a Fund Manager has a better grip on the levels of inflows and hence invests only when convinced. Investors can exit the fund whenever they wish, at the daily - declared NAV (subject to load).

The Premier Equity Fund will at all times seek to protect the interests of long term investors by seeking to create barriers towards preventing early and untimely exits. There is an entry load of 2.25% for any amount for investments either through lumpsum/SIP. There is an exit load of 1 % on redemption within 1 year from the date of allotment or subscription.

Source : Equity Bulls

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