Frequently Asked Questions

Know Your Customer (KYC) is the process used for identification of a customer whenever he/she opens an account with a financial entity. It establishes an investor’s identity & address through relevant supporting documents such as a photo ID and address proof.

Yes, KYC is mandatory for investing in mutual funds under the Prevention of Money Laundering Act, 2002 and rules framed under them, and in compliance with the SEBI Master Circular on Anti Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries.

At present, as an investor who invests with different intermediaries in the security market, you need to undergo separate KYC processes with each of them. To create uniform procedures for all SEBI Registered intermediaries, including Mutual Funds, brokers and depository participants, and to avoid duplication of KYC, SEBI has introduced uniform KYC guidelines for the securities market effective January 1, 2012.

  • Stock brokers
  • Depository Participants (DPs)
  • Mutual Funds (MFs)
  • Portfolio Managers (PMs)
  • Venture Capital Funds (VCFs)
  • Collective Investment Schemes (CIS)

You need to download the enhanced application form (New KYC Application) from our website www.sundarammutual.com or from www.amfiindia.com or from the website of any other SEBI registered KYC Registration Agencies (KRA), for example, www.cvlkra.com.

You need to fill up the new application form and submit at the offices of any SEBI registered Intermediaries, including Mutual Funds.

Upon submission of documents, and completion of In-Person Verification (IPV) you would receive a temporary acknowledgement from the place you submit the New KYC Application.

The documents are then sent to the KRA either by the Mutual Fund or the Registrar & Transfer Agent (RTA). Within 10 working days after receipt of the same, the KRA will, after verification of the documents, send a letter to you confirming KYC compliance status/ the"final acknowledgement" or intimating any deficiency observed in the documents submitted.

The new KYC procedure is applicable for new investors only.
If you are an existing investor in a Mutual Fund and were already KYC compliant before January 1, 2012, you have to submit the additional KYC form duly filled. In case of a new investor to any AMC, you would be required to furnish CKYC form.

Yes. You can first complete the KYC procedure without any transaction.

Yes, the IPV done by one SEBI registered intermediary holds valid for another SEBI-registered intermediary.

You can submit the KYC applications in any of the branches of Sundaram Asset Management Company Limited. For a list of branches, please visit our website www.sundarammutual.com

No. As the KRA requires a completed form including the photograph and signature, email-based submission is not allowed.

Yes. Micro SIP application will be accepted along with the required Proof of Identity and Proof of Address as defined in the KYC application form.

Notary Public, Gazetted Officer/ Manager of a Scheduled Commercial/ Co-operative bank or Multinational Foreign Banks are authorized to attest the KYC documents. Name, Designation & seal should be affixed on the copy.

In case of NRIs, authorized officials of overseas branches of Scheduled Commercial Banks registered in India, Notary Public, Court Magistrate, Judge, Indian Embassy/ Consulate General in the country where the client resides are permitted to attest the documents. Name, Designation & seal should be affixed on the copy.

No. You would need to make use of the new KYC Application form available at www.sundarammutual.com website of AMFI or of any SEBI registered KRA.

  • In-Person-Verification or IPV: It is mandatory for all SEBI-registered intermediaries to conduct IPV of their clients. For Mutual Fund investors, the IPV can be done by either the AMC or the Registrar & Transfer Agents (RTA) or by AMFI/NISM certified Mutual Fund distributors who are KYD compliant, or by Scheduled Commercial Banks in case of direct application for subscription to Mutual Fund units. In addition to existing KYC verification procedures, once the IPV process is also completed, the investor may then be considered KYC compliant under the revised KYC norms, and hence permitted to invest in Mutual Funds (MFs).
  • KYC application form: In view of these enhancements, there are a few changes to the KYC application form. The revised application form is available on our website www.sundarammutual.com and is also accessible at www.amfiindia.com

Pursuant to SEBI circular no. MIRSD/Cir-5/2012 dated April 13, 2012, mutual fund investors who were KYC compliant on or before December 31, 2011 are required to submit 'missing/not available' KYC information and complete the 'In Person Verification' (IPV) requirements if they wish to invest in a new mutual fund, where they have not invested/ opened a folio earlier, effective from December 03, 2012. Individual investors have to complete the following missing/not available KYC information:

  • Father's/Spouse Name
  • Marital Status
  • Nationality
  • Gross Annual Income or Net worth as on recent date
  • In-Person Verification (IPV)

To update the missing information, investors have to use the"KYC Details Change Form" for Individuals Only available at www.sundarammutual.com or www.amfiindia.com Section B of the form highlights 'Mandatory fields for KYC done before 1 January 2012' which has to be completed.

In case of Non-Individuals, KYC needs to be done afresh due to significant and major changes in KYC requirements by using"KYC Application form" available for Non-Individuals only in the websites stated above.

Duly filled forms with IPV can be submitted along with a purchase application, to the new mutual fund where the investor is investing/ opening a folio. Alternatively, investors may also approach their existing mutual funds at any investor service centre to update their 'missing/not available' KYC information.

As per the circular, certain details which were a part of uniform KYC (Know Your Customer) form viz. Occupation details, Gross Annual Income/net-worth and Politically Exposed Person (PEP) status were shifted to intermediary specific application forms so that the KYC form is kept uniform across intermediaries. Accordingly, the updated KYC form and application form can be accessed at www.sundarammutual.com.

Subsequent to the issue of this circular, point no. d) Gross Annual Income or Net worth as on recent date mentioned under the"missing/not available KYC information" in the KYC form covered in Q15 stands removed as this information has been moved to the intermediary specific application form. The remaining missing information has to be provided by investors who intend to invest in a new mutual fund, where they have not invested/ opened a folio earlier.

Further, investors who have used the updated KYC form but old application form (one without the details as underlined above) while subscribing to the units of Schemes of Sundaram Mutual Fund should also submit the Additional KYC details form available at www.sundarammutual.com.

A Systematic Investment Plan (SIP) is a small, regular investment in mutual funds for a fixed time period. Benefits of SIP are that they make sure you invest regularly inculcating investing discipline, you can start investing with as little as ₹500, give you flexibility to choose your SIP amount, date of debit, frequency of SIP and the period until which your SIP should run, and average out investment costs. Read more about SIPs here.

If an investor wants to invest ₹12000 and makes a one-time investment at a NAV of ₹15, units allotted will be 800 (12,000/15).

In the case of a SIP, the investor distributes ₹12,000 over a year and invests ₹1,000 every month. The amount will be invested at different levels of NAV, as market conditions and level of indices keep changing on a day-to-day basis. The investment in 12 instalments will get averaged at different NAVs in an automatic manner without the investor timing the entry point.

When investments are done at regular intervals, units are accumulated at different market levels. When an equal sum is invested every month, the amount will get averaged based on the different NAV's. Here’s an example:

SIP Date SIP Amount (₹) NAV per unit (₹) Number of units (SIP amount/NAV)
1st Oct 2018 1000 10 100
1st Nov 2018 1000 10.5 (increased) 95.238 (lesser units)
1st Dec 2018 1000 9.5 (decreased) 105.26 (more units)
Total 3000 300.49
Average cost per unit (Total amount/total number of units) 9.98

SIP can be done as weekly (every Wednesday), monthly or quarterly instalments for open-ended Equity schemes (except ELSS), equity hybrid funds and Fixed Income Schemes of Sundaram Mutual, taking into account that the total aggregate of such cheques & payment instructions is not less than ₹5,000.

  • Weekly: Minimum amount ₹1000 every Wednesday, minimum number of instalments 5
  • Monthly:
    1. Equity and equity oriented (except ELSS): Minimum amount ₹100, minimum number of instalments is 20
    2. Debt funds: Minimum amount ₹250, minimum number of instalments is 20
  • Quarterly: Minimum amount ₹750, minimum number of instalments is 7

You cannot change your SIP date. You will have to cancel your SIP and start a new one.

You can start SIPs only in the case of equity and fixed income funds. For liquid funds, only lump sum investments are allowed.

Except in ELSS (Equity Linked Savings Scheme) or tax-saving funds, which have a lock-in period of three years, investments in other funds can be redeemed before the end of the SIP tenure. Each SIP instalment in ELSS funds has a 3-year lock-in period.

Redemption of the amount during the SIP period will not amount to stopping the SIP. The SIP will remain active unless the investor specifically requests stopping the SIP by means of a written and duly signed request.

There are specific dates for investment. In the case of Sundaram Mutual, the SIP dates are 1st, 7th, 14th, 20th, & 25th of every month. The investor can opt for only one of these dates for investment. In this case, every month during the SIP tenure, the investor will be allotted units based on the NAV on that date. In case it is a holiday, units will be allotted based on the NAV of the next working day.

You can stop the SIP by submission of a written request for cancellation of SIPs with complete details.

30 days is the time gap between giving the first cheque and the subsequent cheques.

SIP monthly instalments for the tenure and the first cheque should necessarily be for the same amount. Each monthly instalment after the first cheque is of the same amount.

Though investments can be switched between schemes, SIPs will continue in the registered scheme until its closure.

Units allotted = amount invested/ applicable NAV
The applicable NAV is the NAV on the day when the investment will be made. Thus, the units allotted will differ depending on the applicable NAV during different months. If the SIP date during a month is a holiday, units will be allotted at the applicable NAV of the subsequent working day.

Dividend will be paid or reinvested based on the eligible units on the record date. During the tenure of the SIPs, the investor is entitled to receive the dividend on their holdings.

Pursuant to RBI guidelines on Electronic Clearing Service (ECS), the process stated below shall be followed for ECS (and post-dated cheque) rejections pertaining to investments in the schemes through Systematic Investment Plan (SIP):

  • If the rejection of ECS is for the reason "account closed", the cheque won’t be presented again and this will lead to closure of SIP.
  • If the rejection of ECS is for the reason "insufficient funds", only two subsequent representations shall be made. Rejection of the third representation will lead to closure of SIP.
  • If the rejection of ECS is for any other reason, only two subsequent re-presentations shall be made. Rejection of the two subsequent re-presentations will lead to closure of SIP.

We will send a Not in Good Order policy letter along with Banker's memo through courier/ Registered post. A duplicate cheque will not be accepted against the bounced cheque.

We will send a transaction confirmation through email/ SMS provided you have registered your email address and mobile number with us.

If you have a KYC compliant valid folio, you can register SIP online.

If the investor wishes to change the amount/ date/ frequency of an ongoing SIP, the investor needs to use a fresh SIP application form to register a new SIP in the same Scheme.
Investor holds the right to discontinue the SIP facility at any time by sending a written request to offices of Sundaram Asset Management or Customer Care Centres of Registrar & Transfer Agent. This request notice should be received at least 21 days prior to the due date of the next payment.

No. Purchases made through third party cheque(s) and third party ECS will not be accepted. In case of payment from a Joint Bank Account, the First holder in the Application must be one of the Joint Account Holders of the Joint Bank Account. However, the following are excluded from this restriction:

  • Gifts to a minor from Parents/ grandparents up to ₹50,000 per annum (for aggregate purchase/ aggregate SIP Instalment).
  • Employer’s Remittance of Payroll deduction on behalf of Employees.
  • Custodian’s payment on behalf of an FII/ Client.

Yes, you can pledge your SIP units.

Tax rebate is applicable for ELSS scheme on the amount invested during the financial year including SIPs. Every unit allotted through a SIP transaction shall be locked-in for 3 years.

Please check the scheme information document as the exit load would differ for schemes.

The legal heirs are entitled to get the investment transferred in their name subject to submission of relevant documents.

At present we allow only weekly, monthly and quarterly SIPs.

Yes, you will get a ‘SIP due’ alert five days before the next SIP date, provided you have registered your email address and mobile number with us. The investor would also be getting an email/ SMS alert for SIP renewal, on a T minus 7 days basis, where T is the last SIP transaction date.

Renewal option is available. Any extension of an existing SIP will be treated as a new SIP based on the date of receipt of such a renewal application. Terms and conditions applicable will be as on the date of renewal.

You can invest on behalf of a minor as the Guardian. On attaining majority, we can change the status from Minor to Individual based on receipt of the following documents of the investor (your son/daughter):

  • attested copy of birth certificate of the minor
  • PAN card copy
  • KYC (Know Your Client) confirmation/ acknowledgement letter from the banker (of the bank registered in our records/ going to be registered in our records)
  • attestation of his/ her signature and bank details
  • covering letter duly signed by both minor and guardian for change in status

The SIP Enrolment and Auto Debit form can be used to change bank details for an ongoing SIP. Please tick the box indicated, fill in the folio number alongside, proceed to fill up the details under SIP Auto Debit: Bank Account Details, and sign.

The SIP Top-Up feature allows you to increase your contribution to a SIP at pre-determined intervals by a fixed amount during the tenure of SIP.

  • Add to your Savings: As personal income increases, you can add to your investments through SIP by opting to top-up your investments by a fixed amount at pre-determined intervals.
  • Ease of business: This unique service offering also helps avoid the paperwork associated with increasing your SIP contribution during the SIP tenure.
  • Ease of Maintenance: The Top-up feature reduces the necessity for creating and tracking multiple SIPs in the same Scheme.

Please find below an illustration of how the Top-up feature operates.

SIP Period: Jan-2014 to Dec-2016 (3 years)
Monthly SIP Instalment Amount: ₹1,000
SIP Date: 1st of every month (36 instalments)
Top-up Amount: ₹1,000
Top-up Frequency: Yearly
Year Monthly SIP Instalment Amount (a) (₹) SIP Amount for the year (b) (₹) Monthly SIP Instalment Amount (c) (₹) Top-up Amount (d) (₹) SIP Instalment including the Top-up Amount (e) (₹) SIP Amount for the year (f) (₹)
(a) x 12 months (c) + (d) (e) x 12 months
2014 1,000 12,000 1,000 N.A. 1,000 12,000
2015 1,000 12,000 1,000 1,000 2,000 24,000
2016 1,000 12,000 2,000 1,000 3,000 36,000
Total 36,000 72,000

Top-up feature under the SIP facility is currently available under all open-ended schemes of Sundaram Mutual except Sundaram Money Fund and Sundaram Debt Oriented Hybrid Fund.

Minimum amount: ₹500 and in multiples of ₹500 thereafter.

Yes. SIP Top-up is available for Monthly and Quarterly SIPs.

  • Monthly SIP: Half-yearly, Yearly top-up
  • Quarterly SIP: Yearly top-up

SIP instalment amount needs to be a minimum of ₹500 in order to avail the top-up facility under monthly SIP. Otherwise, the transaction would be processed as a SIP without Top-up feature subject to it being valid and complete in all other aspects.

No. The Top-up option must be specified by the investors while enrolling for the SIP facility.

No. Top-up feature is presently not available for weekly SIPs.

No. The Top-up feature shall be available for SIP only through ECS (Debit Clearing)/ Direct Debit Facility/Standing Instruction.

The Top-up details cannot be modified once enrolled. In order to make any changes, the investor must cancel the existing SIP and enrol for a fresh SIP with the revision in Top-up details.

  • Half yearly Top-up: SIP period has to be for a minimum of seven complete months.
  • Yearly Top-up: SIP period has to be for a minimum of thirteen complete months.

Under this option, the amount of investment through SIP instalment shall be increased by an amount chosen by the Investor post every 4th (fourth) SIP instalment.

No. The top-up feature shall not be available in the following cases:

  • SIP registration under perpetual mode.
  • SIP registrations which are received through Channel Partners, Exchanges and ISIPs.
  • Registrations under COMBO SIP facility.

A person who is an Indian citizen or a person of Indian origin who stays abroad for employment/carrying on business or a vocation outside India, or stays abroad under circumstances indicating an uncertain duration of stay abroad.

A citizen of any country other than Pakistan, Sri Lanka and Bangladesh, who is of Indian origin e.g. has previously held an Indian Passport; or was born in India, or his or her parents or any of his grandparents were citizens of India; or the person is a spouse of an Indian citizen. This is a status therefore associated with citizenship and not residence. A PIO may be living in India or overseas.

An institution established or incorporated outside India, which proposes to make investments in Indian securities and is registered with SEBI.

NRIs/ Persons of Indian Origin/ FIIs are entitled to invest in Mutual Fund schemes in India.

The NRI must open any one of the following accounts through banks that provide such facility. They are:

  • Non-Resident (External) Rupee (NRE) accounts - Rupee accounts, savings or current accounts, from which funds are freely repatriable. They can be opened with funds remitted from abroad, which can be remitted abroad.
  • Non-resident Ordinary Rupee (NRO) accounts - Rupee accounts, savings or current accounts, that can be opened with funds generated in India. However, funds in NRO accounts can be remitted abroad subject to/as per various directives in force at the time of repatriation. More details can be found on the Reserve Bank of India (RBI) website www.rbi.org.in.
  • Foreign Currency Non Resident(FCNR) accounts - Similar to the NRE account, except that the funds are held in permitted foreign currencies like USD, GBP, JPY, EUR, CAD and AUD and that it can be opened only in the form of term deposits for a period up to five years.

No special approval is required. NRIs/FIIs have been granted a general permission by RBI [Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000] for investing in/redeeming units of the schemes subject to conditions set out in the aforesaid regulations. However, PIO's need to attach a copy of the PIO card with the application form at the time of investing.

An NRI cannot make the investment in foreign currency. He needs to give a rupee cheque from his NRE/ NRO bank account in India. He may also send a rupee cheque from abroad payable in a bank in India. However, for an NRI to invest, it is mandatory that he maintains a designated NRO/NRE bank account in India.

No, the fund cannot accept an NRI application with an overseas bank account detail.

The Overseas address is mandatory for NRI Investors. The local address is optional and can be given as a communication address.

A Common Application Form duly completed, together with cheques or bank drafts should be submitted at Investor Service Centres of Sundaram Mutual Fund. All cheques/demand drafts accompanying the application form must be made in favour of the scheme names. For e.g. to invest in Sundaram Select Midcap Fund, the cheque should be drawn in favour of the scheme i.e. “Sundaram Select Mid Cap Fund” and crossed "A/c payee" only and should be made payable at a city where the application is accepted by any Sundaram Mutual Fund Investor Service Centres. The investor may alternatively apply for units if he has an IPIN on our website www.sundarammutual.com

Subscription should be vide cheques or bank drafts drawn from their NRE/NRO accounts in India. In case of investment through bank drafts, the application must be, accompanied by an FIRC (Foreign Inward Remittance Certificate) or a BC (Banker's Certificate). This is towards the proof that, the amount is out of the NRE/NRO account of the investor. These instruments must be payable at any of our branch locations. The allotment will be based on the date and time of receipt of such requests at these branch locations.

If subscriptions are received with an outstation cheque (not payable at the location at which the application is lodged), the allotment will be based on the date of realization of credit into our Account.

Sundaram Mutual Fund has also introduced the 'Invest Online' facility on website www.sundarammutual.com.

NRI's can experience the world of online convenience at a click and avail the following benefits:

  • Get a portfolio one view across all your folios
  • Online Transact: Purchase, Switch, Redeem and more
  • Generate account statements, track past transactions

Units will be allotted based on the date and time of receipt of the request either at Chennai or at any of our branches or Investor Service Centres. If received before 3 PM on any stock market working day/business day, units will be allotted based on the net asset value (NAV) of that day. Any applications received after 3 PM will be allotted units based on the NAV of the next business day.

For further details on applicable NAV and cut-off time, please refer the Scheme Information Document of the respective schemes.

With effect from 1st October 2012, for subscription value of ₹2 lakhs and above, units will be allotted only on the date of funds realization and available for utilization by the scheme.

The investor can redeem funds offline by submitting a duly signed repurchase request at any of our branches or at the branches of our Registrar and Transfer Agent. Redemption will be processed based on the date and time of receipt of the request either at Chennai or at any of our branches or Investor Service Centres. If received before 3 PM on any stock market working day, redemption will be based on the NAV of that day. Any applications received after 3 PM will be redeemed based on the NAV of the next business day.

Redemption proceeds will be paid by cheque/direct credit. The cheque will be payable to the first unitholder with the bank account number. Alternatively, the redemption proceeds will be credited directly to the investor’s bank account. This facility is available with select banks as mentioned in our application forms. Redemption proceeds/repurchase price and/or dividend or income earned (if any) will be payable in Indian Rupees only. The fund will not be liable for any loss due to exchange fluctuations, while converting the Rupee amount into US Dollar or any other currency.

NRI Investors can seek repatriation of the redemption proceeds on their investment where the investment is made through approved banking channels or by debit to their NRE / FCNR Account.

No, units cannot be redeemed or allotted on the basis of fax applications. A request that lacks a valid signature cannot be processed due to legal restrictions.

Balances held in NRE accounts can be repatriated abroad freely, whereas funds in NRO accounts cannot be remitted abroad but must be used only for local payments in rupees. Funds due to the non-resident accountholder which do not qualify, under the Exchange Control regulations, for remittance outside India are required to be credited to NRO accounts.

Type of Account Currency Repatriable/Non-Repatriable
NRE Non-Resident External INR Freely Repatriable
NRO Non-Resident External INR Non Repatriable
FCNR - Foreign Currency Non-Resident INR Repatriable

The tax treatment for NRI investors with respect to Mutual Fund investments is the same as that applicable to Resident Investors with the exception that the applicable tax on capital gains, if any, would be deducted at source from the repurchase proceeds for NRIs. View the Mutual Fund Tax Reckoner for 2018-2019 here.

Note: This information has been provided for general purposes. In view of the individual nature of implications, please consult your tax advisor/ authorised dealer with respect to specific tax and other implications.

TDS certificate is issued in the name of the investor mentioning the details of the transaction and the tax deducted. The TDS certificate is commonly known as Form 16 A.

The digitally signed TDS Certificates (Form 16A) are dispatched to investors a month after redemption is carried out to the address registered with us.

The gains from equity mutual funds are taxable based on the holding period. Short-term capital gains attract tax at the rate of 15%. However, Long-Term Capital Gains (LTCG), more than Rs 1 lakh, are taxable at the rate of 10%. In the case of debt funds, Short-Term Capital Gains are taxable at the rate of 30%. Holding the fund for more than three years will result in a 20% tax on the gains with indexation benefit. LTCG on non-listed funds will be taxed at the rate of 10% without indexation.

Yes, unlike banks where a POA holder cannot open an account on behalf of the NRI/FIIs, in a mutual fund the POA has the authority to invest on behalf of the investor and sign documents for initial and additional purchases as well as redemptions.

While applying for purchase of units, the POA holder needs to submit the original POA or a duly notarized copy. The Power of Attorney should contain the signature of both the first holder and the POA holder. Only when the POA is registered does the POA holder have the right to transact on behalf of the NRI/FII investor. His signature will be verified for processing any transaction/request.

QFIs shall include individuals, groups or associations, resident in a country that is a member of Financial Action Task Force (FATF) or a country that is a member of a group which is a member of FATF and resident in a country that is a signatory to IOSCO’s MMOU (Appendix A Signatories) or a signatory of a bilateral MOU with Securities and Exchange Board of India (SEBI). QFIs do not include FIIs/Sub accounts/ Foreign Venture Capital Investor. If you’re a QFI and have more questions, visit https://www.sundarammutual.com/pdf2/2012/FAQs_QFI_SEBI_AUG_14_2012.pdf

SEBI vide circular no. SEBI/HO/IMD/DF2/CIR/P/2016/37 dated February 25, 2016 has mandated Mutual Funds to provide on their website, the list of names and addresses of investors in whose folios there are unclaimed amounts (redemption / dividend). Further, Mutual Funds are also required to provide information on the process of claiming the unclaimed amount(s) and the necessary forms / documents required for the same.

Redemption / dividend cheques sent to investors that remain unpaid beyond their validity period are categorised as unclaimed.

Investors are required to submit the completed Unclaimed redemption / dividend claim form and comply with the requirements stated therein.

The original amount payable to an investor, together with any interest earned thereon by deployment in permitted instruments until three years from the date of the instrument. Any interest earned after this date is transferred to the Investor Education and Protection Fund in accordance with the provisions of extant SEBI Regulations / Circulars & Guidelines. These provision also specify the nature and manner of utilisation of such amounts.

To ascertain your unclaimed amount(s) (redemption / dividend) with us, please click here.

There are various procedures by which transmission of units is done. The documentation required would vary depending on the mode and type of holding of the investment. Please click here to get clarity on documents required in different situations.

Disclaimer: The information included in the"Frequently Asked Questions" section, is for informational purposes only. Investors are requested to read the offer document in conjunction with addendum before investing.

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Mutual fund investments are subject to market risks. Read all scheme related documents carefully.