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IDLC MUTUAL FUNDS

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Frequently Asked Questions


Is SIP available for all mutual funds of IDLC AML?

Yes

What are the benefits of SIP?
what is “cost averaging”?

Cost averaging is investing a fixed amount on a regular basis for a long-term to take the advantage of the market cycle. As the investment amount is fixed, more units are purchased when price is low and fewer when price is high. Suppose, x invested BDT 60,000 at a time, while y invests the same amount but in an installment of BDT 5,000 every month for a year. The table below illustrates how their investment would behave:

What is the calculation process of insurance premium amount?

The insurance premium amount is BDT 25 per month per 1 lakh taka SIP size.

Is insurance available for IDLC asset management shariah fund?

No

How to invest in SIP of IDLC AML?
What is the maximum amount of installment under direct debit facility?

The maximum amount of SIP installment is BDT 1,000,000 per registration for individuals. There is no maximum limit for institutions.

How to discontinue the SIP?

To discontinue the SIP, the investor must provide an application to the asset manager at least 5 working days before the next installment date.

Will there be any fees and/or penalties for discontinuing the SIP before maturity?

Units surrendered in less than 90 calendar days of purchase will get 3% less (exit load) than the published “investor’s sale price”. For IDLC SIP investors, 90 calendar days will be calculated from 1st installment date

What if investor defaults on their auto-debit payment?

o There are no penalties for default. However, the default of 2 (two) installments will result in discontinuation of SIP. If investor wants to continue his SIP again, he/she will have to re-register as a new SIP account.

Can the investor provide 2 different bank accounts for top-up?

No

Is there a minimum investment amount?

Yes, the minimum investment amount is BDT 5,000

Is there a minimum lot size for SIP?

There is no minimum lot size of units under the SIP. Any fraction amount remaining will be converted when it sums up to one unit. If at surrender, remaining amount does not sum up to 1 unit then the remaining amount will be transferred via BEFTN.

What are the payment options for SIP?

Payment in respect of the first installment can be made using a cheque / BEFTN / pay order / demand draft. The payment for all the subsequent installments will have to be through direct debit facility/auto-debit/standing instruction facility as provided by the investors

What is direct debit facility/auto-debit/standing instruction?

An arrangement made with the bank that allows IDLC to transfer a fixed amount (as instructed by investor) from investor’s account on an agreed date.

Can investor change his/her bank account information before the maturity of the SIP?

Request for change in bank account information should be submitted at least 5 working days before the next installment date.

Can the investor pay a lump sum amount in advance?

No, the investor cannot pay a lump sum amount in advance for SIP. He/she will have to pay a pre-determined fixed installment every month at the investor’s discretion.

Does SIP allow partial surrender?

Yes, investor may surrender his/her units partially and continue SIP installments till maturity.

When will the auto-debit occur?

7th of every month. If the investor defaults on that day, the auto-debit will occur on 12th of that month at the prevailing nav of that week.

What is the purchase price for SIP?

Purchase price will be valid from sunday to wednesday. Investors will be able to avail on the prevailing purchase price of that particular week.

What happens if the 7th or 12th of the month is a weekend and/or holiday?

Auto-debit will take place on the following working day on that week’s purchase price.

Does SIP allow investments from joint investors?

Yes

Does SIP allow investments from institutional investors?

Yes. Minimum installment is BDT 10,000.

Can investors register for both SIP and non-SIP accounts for mutual funds of IDLC?

Yes, with two different registration numbers.

Can investor register for separate SIP accounts for more than one mutual fund of IDLC?

Yes, with two different registration numbers.

Can investors switch SIP installments between different mutual funds of IDLC?

No, investors must surrender current SIP account and register again for his/her preferred mutual fund.

Will the investor receive annual dividends (if declared) before maturity of the SIP?

Yes. Cash or reinvestment units as preferred by the investor.