Moneycontrol
Feb 15, 2018 12:25 PM IST | Source: Moneycontrol.com

Quantum Mutual Fund extends facility to donate to NGOs to liquid fund

investors can donate 5 percent or 10 percent of their holdings under the folio tagged for the facility to non-governmental organisations through automatic redemption of their units

Quantum Mutual Fund has extended the facility to donate to non-governmental organisations through its funds to one more scheme with effect from Feb 10, it said in a newspaper notice.

Accordingly, the facility, termed SMILE, will be introduced under Quantum Liquid Fund along with the other eligible schemes.

Earlier, the eligible schemes were Quantum Long Term Equity Fund, Quantum Equity Fund of Funds, Quantum Dynamic Bond Fund, Quantum Multi Asset Fund, and Quantum Gold Savings Fund.

Under the facility, investors can donate 5 percent or 10 percent of their holdings under the folio tagged for the facility to non-governmental organisations through automatic redemption of their units.

Residents, Hindu undivided families, limited liability partnership, societies, partnership firms, trusts, and non-resident Indians with terms and conditions stated in SMILE form can avail the facility, and can opt for growth option for investment.

Investors are allowed to choose from seven non-governmental organisations during the initial request for the facility, and a maximum of two organisations can be selected.

In case of failure to choose any organisation, HelpyourNGO Foundation will be taken as the default organisation, and investors can choose a maximum of two sectors.

Quantum Mutual Fund also said that the foundation will transmit the contributed amount to the organisation chosen by the foundation in the sectors selected by the investor.

Investors can also chose the percentage of contribution to the organisations and can also change the percentage and organization at any time. However, the amount distributed will be the latest request registered as on Sep 30.

A minimum of Rs 500 can be contributed through redemption from folio tagged with SMILE to the organisations.

The contribution of 5 percent or 10 percent will be subject to exit load. The asset management company will transfer the redemption amount depending on the investor's authority to the HelpyourNGO Foundation, which will issue 80G certificate to the investor for the amount transmitted.

The fund house also said that the foundation will transfer 95% of funds to the respective organisations depending on the contribution chosen by the investor. The foundation will keep 5 percent  of funds as administrative and due diligence cost.
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