The Units of the Mutual Fund can be bought / surrendered through IDLC Asset Management Limited and authorized selling agents appointed by the Asset Manager from time to time and any other procedure as prescribed by the Asset Manager. Surrender of units is allowed only through IDLC AML or the selling agents from which the units are originally purchased.
Application must be made by an individual (both resident and non-resident), a corporation or company (both local and foreign), a trust or a society (registered in or outside Bangladesh) and not by a firm, minor or person of unsound mind. Applications from the Insurance, Financial / Capital Market Intermediaries or any other Companies must be accompanied by Memorandum and Articles of Association.
Joint application by two persons is acceptable. In such cases, registration and issuance of “Confirmation of Unit Allocation” will be in favor of principal applicant while dividend and other benefits, if any, will be addressed to the bank account of principal applicant mentioned in the application form / bank account mentioned in BO account. In case of the death of any of the joint holders, only the survivor shall be recognized as having any title to the Units. On death of both the joint holders, the title to the units will bestowed upon the nominee mentioned in the application form.
Minimum purchase amount is –
For individual investors:
BDT 5,000.00 (Five Thousand Taka) against 500 units during IPO. The unit purchase price will vary depending on the NAV of the mutual fund.
For institutional investors:
BDT 50,000.00 (Fifty Thousand Taka) against 5000 units during IPO. The unit purchase price will vary depending on the NAV of the mutual fund.
The minimum subscription amount for the individual or institution may change in the future upon due approval from the trustee.
Application for purchase of units should be accompanied by an account payee cheque / pay order / bank draft in favor of ‘IDLC Balanced Fund’ for the total value of units.
After clearance / encashment of the cheque / pay order / bank draft, the applicant will be issued with a “Confirmation of Unit Allocation” against every purchase of units he / she / the institutional investor applies for; the units will be delivered to the unit-holder’s BO A/C.
Partial surrender (fraction of total units held under a Unit Allocation Confirmation) is allowed without any additional cost subject to minimum surrender quantity is 500 (Five Hundred) units for individuals and 5,000 (Five Thousand) units for institutions. Upon partial surrender, the unit-holder will be issued with a new “Confirmation of Unit Allocation” representing the balance of his / her / its unit holding.
Full surrender of units is also allowed without any additional cost. For both, partial and full surrender, investor must submit surrender form to IDLC AML and submit CDBL transfer form to respective brokerage house.
A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows an investor to invest a certain pre-determined amount at a regular interval (monthly). A SIP is a planned approach towards investments and helps to inculcate the habit of saving and building wealth for the future.
Buy and Surrender Procedures in SIP:
An investor can invest through SIP by auto debit system provided against investor’s Bank Account. Please note that initial/first installment of investment must be made via cheque. Subsequent installments will be auto-debited on the 7th of each month. In case of default, auto-debit will occur on 15th of each month. Total of 2 (two) defaults are allowed after which discontinuation of SIP will occur.
Investor must have a BO Account; he / she will get the SIP units in his / her BO Account based on the ongoing weekly Net Asset Value (NAV) of the fund. Investor can start SIP with a very small amount that is BDT 1,000 or any multiple of BDT 1,000. One can also increase / decrease the amount being to be invested in regular fashion.
The SIP will be offered for at least 2 years or any other higher period set by the AMC. However, investor can set SIP scheme any number of years as preferred as long as it is not in fractions. After this period, the individual scheme will be matured and may surrender or continue after maturity. If surrendered, no fees / charges may be charged on surrender and may also offer highest premium over the declared surrendered price at that time.
There will be no minimum lot size under the SIP as like normal investors. Based on a discount from declared sales price per unit available, units will be credited to investor’s BO account. However, any fraction amount remaining will be converted when it sums up to one unit.
SIP investor may buy units at a discount from the NAV offered to the normal (NON-SIP) investors. In addition to that, SIP investor may surrender at a premium of repurchase price offered to normal unit holders at maturity as per SIP brochure.
SIP investors can choose either option of cash dividend or cumulative investment plan (CIP). If a SIP investor chooses CIP (i.e. Dividend reinvestment process) instead of cash dividend, they may also enjoy CIP units at a discount of prevailing Sales price used for CIP conversion. After CIP conversion, they will get dividend on total number of units in the next year.
Investors can discontinue the SIP at any time. If an investor wants to terminate the SIP before two (2) years, NO fees or penalties will be charged to the investor which makes SIP very flexible for the investor. Investor can also partially surrender units before maturity at no additional charges. After maturity of SIP, the investor can easily surrender through the AMC or the Selling Agents.
In addition, full amount of SIP investment is considered as allowable investment for getting tax rebate. And, investors can avail life-insurance coverage on an optional basis.
The Units may be transferred by way of inheritance/gift and/or by specific operation of the law. In case of transfer, the Fund may charge a nominal fee as decided by the Asset Manager from time to time except in the case of transfer by way of inheritance.
Dividend will be delivered in cash or by way of units under Cumulative Investment Plan (CIP) as the applicant gives option in the application form.
All payments / receipts in connection with or arising out of transactions in the units shall be in Bangladeshi Taka.
The redemption shall be made on first come first serve basis. If the redemption request on a particular day exceeds 1% of the outstanding unit, the Asset Manager may differ, if required, the redemption request over 1% for a maximum period of 7 (seven) working days. The Asset Manager shall proceed to sell adequate assets and / or arrange loan as it deems fit to pay the surrender money within the stipulated time in the best interest of the unit-holders.