The net asset value of the 'up to three years' sub-plans will be at par with the regular plans
Baroda Pioneer Mutual Fund has introduced four sub-plans under Baroda Pioneer Liquid Fund - Plan C, for deployment of unclaimed redemption and dividend amounts with immediate effect, a notice from the fund house stated.
The four sub plans are Unclaimed Dividend Plan – up to three years, Unclaimed Redemption Plan - up to three years, Unclaimed Redemption Plan - above three years, and Unclaimed Dividend Plan – above three years.
The capital market regulator, Securities and Exchange Board of India had allowed mutual funds to deploy unclaimed redemption and dividend money into new liquid or money market funds from April 1, 2016.
Subsequently, fund houses are required to settle all claims made within three years from the due date, and pay the income earned through its deployment in addition to the initial unclaimed amount.
When such investments in the liquid fund remain unclaimed for over three years, they will be switched to the respective sub-plan. The difference between the net asset value at the end of three years and the date of switch will be transferred to the fund house's 'investor education fund'.The net asset value of the 'up to three years' sub-plans will be at par with the regular plans, while for 'greater than three years' sub-plans will be maintained at Rs 1,000 . The expense ratio of the sub-plans has been capped at 50 basis points.