Discontinuation of Dividend Reinvestment Sub-Option in Sundaram Tax Saver w.e.f. Mar 11

Message from Sundaram Mutual Fund

This is further to the AMFI (Association of Mutual Funds of India) Circular dated January 9, 2015 to discontinue the Dividend Reinvestment sub-option under Equity-Linked Savings Schemes (ELSS).

In respect of the same, please find the Notice cum Addendum on discontinuance of fresh subscriptions under the Dividend Reinvestment sub-option (hereinafter referred to as “Reinvestment option”)under the Direct and Regular Plans of Sundaram Tax Saver, an open ended Equity-Linked Savings Scheme, w.e.f. March 11, 2015 (“Effective Date”).

Important features of the Addendum:

No fresh subscriptions would be accepted under the Reinvestment option of the Scheme from the Effective Date.

The revised options under the Scheme will be Dividend and Growth options , with Growth option as the default option. Dividend option will have dividend payout as the sub-option. Hence dividend(if any), will be paid out where the investor chooses the Dividend option.

Those investors who do not wish to receive the proceeds of dividend pay-out(if any), may choose the Dividend Sweep facility available under the Scheme.

For existing unitholders under the Reinvestment option, dividend(if any), declared under the Scheme on or after the effective date, will be compulsorily paid out/credited to the 1st unit holder’s bank account, instead of being reinvested. Outstanding units in the Reinvestment option which are under lock-in shall continue to be so until expiry of three years from the date of original investment.

Those Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP), that were earlier registered under the Reinvestment option of Sundaram Tax Saver will be processed under the Dividend Payout option for installments beginning on or after the Effective Date.

All other terms and conditions of the Scheme Information Document(s)/Key Information Memorandum(s)/Statement of Additional Information will remain unchanged.

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