SUNDARAM MONTHLY INCOME PLAN

(n) Suspension of Sale/ Repurchase of units:
The sale/repurchase of the units of the scheme may be suspended temporarily or indefinitely under any of the
following circumstances:
• During the period of Book closure, if any
• Stock markets stop functioning or trading is restricted
• Periods of extreme volatility in the stock markets, which in the opinion of the Investment Manager is prejudicial
to the interest of the unit holders.
• A complete breakdown or dislocation of business in the major financial markets
• Natural calamities
• Declaration of war or occurrence of insurrection, civic commotion or any other serious or sustained financial,
political or industrial emergency or disturbance.
• SEBI, by order, so directs.
In the above circumstances, the time limits indicated, for processing requests for purchase and repurchase of units
will not be applicable.
Suspension or restriction of repurchase / redemption facility shall be made applicable only after the approval from
the Board of Directors and the Trustees. The approval from the AMC Board and the Trustees giving details of
circumstances and justification for the proposed action shall also be informed to SEBI in advance.
(o) Nomination Facility
In terms of Regulation 29A of SEBI Mutual Fund Regulations, the AMC will provide an option to investors, being
individuals, to nominate a person in whom the units will vest upon the death of the investor. Joint holders may
together nominate a person as a nominee. It must be understood that by providing this facility, the AMC is not
declaring the nominee as the person entitled to the units upon the death of unit holder nor does the AMC purport
to confer or grant any rights other than those available under law to the nominee. The nominee receives the units
(subject to the rights of any subsisting charge holder) only as an agent/ trustee of the person who is entitled to
them under law.
Where nominee is a minor, the details of parent/ guardian need to be furnished. Only an individual provided he/ she
is otherwise not disqualified to own the units could be a nominee. Transmission of units (subject to the rights of
any charge holder) to the nominee will constitute full discharge of the obligations of the AMC/ trustee, towards the
estate / legal heirs / successors of the deceased unit holder,
The nomination facility is subject to applicable laws. Investors are requested to comply with the prescribed
procedures to avail this facility, the details of which are available with the R&T agent.
(p) Duration of the scheme
Sundaram Monthly Income Plan is an open-ended scheme (with no assured returns), and as such it would have a
perpetual duration. However, in terms of the SEBI regulations, this scheme may be wound up earlier after repaying
the amount due to the unit holders:
1. If on the happening of any event which, in the opinion of the Board of Trustees, requires this scheme to be
wound up; or
2. If 75% of the unit holders of this scheme pass a resolution that the scheme be wound up; or
3. SEBI so directs in the interest of the unit holders of this scheme. When the scheme is to be wound up, the
Board of Trustees shall give notice of the circumstances leading to the winding up of the scheme:
(i) to SEBI and
(ii) to the unit holders of this scheme by publication in the newspaper(s) as per prevailing guidelines.
On and from the date of the publications of notice of winding up, the Board of Trustees or the Investment Manager,
as the case may be, shall:
1. cease to carry on any business activities in respect of the scheme so wound up
2. cease to create or cancel units in the scheme
3. cease to issue or redeem units in the scheme
VI. DETAILS OF PLANS OFFERED UNDER THE SCHEME
1. Options and Investment Plans offered under the scheme
The scheme offers the investors the following investment options.
a. Dividend Option
i. Monthly
ii. Quarterly
iii. Half-Yearly
b. Growth Option
Re-investment of dividends is also available
a) Dividend Option
Under the dividend option dividends will be declared out of the distributable surplus as per SEBI regulations and
paid to the investors holding the units on the record date fixed for this purpose. It is to be noted that while it is the
intention of the trustee to pay out dividends at monthly/ quarterly/half-yearly periodicities, there is no assurance /
guarantee with respect to the quantum or frequency or certainty of dividend distribution, which will depend on the
performance of the scheme and availability of distributable surplus. The dividend pay out may also vary from
month to month. The decision of the Trustees will be final in this regard.
Unit holders opting for the dividend option of the fund will only receive dividends. All those unit holders whose
names appear in the Register of Sundaram Monthly Income Plan, under the dividend option - monthly, quarterly
and half - yearly as the case may be, as on the Record Date, will be entitled to the dividend. The record dates for
the said options will be as follows:
Options Record Date
Monthly the last working day of each month or such other date as may be decided by the Trustees.
Quarterly the last working day of March, June, September and December or such other date as may be
decided by the Trustees.
Half- yearly the last working day of March and September or such other date as may be decided by the
Trustees.
As per the Regulations, the Fund shall despatch to the unit holders, the dividend warrants within 30 days of
declaration of dividend. dividends will be payable to those unit holders whose name appear in the Register of unit
holders on the Record Date. The cheques/warrants will be drawn in the name of the sole/first holder and will be
posted/mailed to the address as indicated in the application form. As per SEBI guidelines and in the interest of the
investors to safeguard from loss or theft of dividend cheques/warrants, investors are requested provide the name
of the bank, branch and account number in the application form. Such information would be incorporated in the
cheque/warrants. Investors can also opt to receive dividend through the ‘Direct Credit Facility’ in specified branches
of ABN Amro Bank, ICICI Bank, HDFC Bank, Standard Chartered Bank and IDBI Bank. The dividend payout will again
be subject to the distribution tax payable by the Mutual fund as per the Income Tax Act or other Laws.
The NAV of the dividend plans will stand reduced/adjusted to the extent of dividend distributed including
dividend/distribution tax, if any, and other statutory charges as on the record date. The NAV of the growth plan shall
remain unaffected.
SHUT-OUT PERIOD
After the closure of the Initial Offer Period, on an ongoing basis, investors should note that the AMC reserves the
right to declare Shut-out period or closure period not exceeding 5 days at the end of each month / quarter / halfyear
as the case may be, for the investors opting for payment of dividend under the respective dividend options.
The declaration of the shut-out period is envisaged to facilitate the AMC to determine the units of the unit holders
eligible for receipt of dividend under the various dividend options. Further, the shut-out period will also help in
quick processing and despatch of dividend warrants. The AMC shall arrange to display at all investor service
centres at least 10 days before the introduction. The shut-out period will be applicable for making investments in
the scheme. During the shut-out period the trustees may stop/restrict any transactions such as purchases,
redemptions and switches under respective dividend options.
b. Growth Option
Investors who would prefer capital appreciation can opt for the growth option. The income earned on their units
will remain invested in the scheme and will be reflected in the Net Asset Value.
Under this option, ordinarily, there will be no dividend pay outs and the income earned will continue to remain
invested/ deployed in the scheme and the movement in the NAV will reflect the growth.
Investors are required to tick the appropriate box in the application form indicating their option. If they omit to
excercise their option, the default option will be monthly dividend payout.
Dividend reinvestment
Investors opting for dividends may choose to reinvest the dividend due to them in the scheme, at the first ex
dividend NAV, Such payment will be treated as a constructive payment of dividend to the investor and a
constructive receipt of the same amount from the investor for investment into the scheme. The AMC has been
advised that such reinvested dividends, being similar to dividend payment will be exempted from tax.
2. SYSTEMATIC INVESTMENT PLAN (SIP)
Investors can also benefit by investing specified rupee amounts periodically for a continuous period. This concept
is called Rupee cost Averaging. This savings programme allows investors to save a fixed amount every month by
purchasing additional units of the scheme. Therefore, the average unit cost will always be less than average sale
price per unit irrespective of the market rising, falling or fluctuating.
Example 1: RISING MARKET
Month Investment (Rs.) Offer Price (POP) Units purchased
1 1000 11 90.909
2 1000 12 83.333
3 1000 13 76.923
4 1000 14 71.429
5 1000 15 66.667
Total 5000 65 389.261
Average Price (per unit) per month = Rs.13.00 (i.e Rs.65/5 months)
Average cost per unit = Rs.12.84 (i.e Rs.5000/ 389.261 units)
Example 2: FLUCTUATING MARKET
Month Investment (Rs.) Offer Price (POP) Units purchased
1 1000 12 83.333
2 1000 9 111.111
3 1000 15 66.667
4 1000 12 83.333
5 1000 13 76.923
Total 5000 61 421.367
Average Price (per unit) per month = Rs.12.20 (i.e Rs.61/5 months)
Average cost per unit = Rs.11.87 (i.e Rs.5000/ 421.367 units)
Example 3: FALLING MARKET
Month Investment (Rs.) Offer Price (POP) Units purchased
1 1000 13 76.923
2 1000 12 83.333
3 1000 11 90.909
4 1000 10 100.000
5 1000 9 111.111
Total 5000 55 462.277
Average Price (per unit) per month = Rs.11.00 (i.e Rs.55/5 months)
Average cost per unit = Rs.10.82 (i.e Rs.5000/ 462.277 units)
By investing a fixed amount of rupees at regular intervals, investors can take advantage of the benefits of Rupee
Cost Averaging.
3. SYSTEMATIC WITHDRAWL PLAN (SWP)
Unit holders of the scheme, who wish to withdraw a specified sum of money each month or quarter, can opt for
this plan. SWP is ideal for those seeking regular inflow of funds. The minimum amount, which the unit holder can
withdraw, is Rs.500. The unit holder may avail this plan by sending a written request to the AMC or to the Registrar.
Withdrawals through SWP are effected as of the first working day of each month or quarter.
The amount thus withdrawn by this option, will be converted into units at the applicable repurchase price on that
date and will be subtracted from the units balance to the credit of the unit holder. However Exit load is not
applicable for monthly/quarterly, withdrawals made under the Systematic Withdrawal Plan. The Fund may close a
unit holder’s account if the balance falls below Rs.500/-, unit holders may change the amount indicated in the SWP,
subject to a minimum amount specified above. The unit holder of the scheme may terminate the SWP on the
written notice and it will terminate automatically when all the units of the unit holder are liquidated or withdrawn
from the account.
The Asset Management Company reserves the right to amend the operational details of SWP options as may be
deemed fit. Such amendments will have prospective effect.
The trustee may launch new plans, in the scheme, within an existing option. In such a case, in relation to
subscriptions received during the initial subscription period, under such plans the trustee reserve the right to make
allotment at the NAV of an existing option, on grounds of expediency, cost and interest of investors
The fund reserves the right to amend, add or withdraw any special features in the interest of investors
4. UNCLAIMED REDEMPTION / DIVIDEND AMOUNT
The unclaimed redemption amount and dividend amounts may be deployed by the mutual fund in call money
market or money market instruments only and the investors who claim these amounts during a period of three
years from the due date shall be paid at the prevailing net asset value. After a period of three years, this amount
will be transferred to a pool account and the investors can claim the amount at NAV prevailing at the end of the
third year. The income earned on such funds will be used for the purpose of investor education. The AMC will make
a continuous effort to remind the investors through letters to take their unclaimed amounts. Further, the investment
management fee charged by the AMC for managing unclaimed amounts shall not exceed 50 basis points.
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