There is a new kid on the mutual funds block, and it seems it is trying to make a unique debut. Bharti AXA Life Insurance Co. Ltd is the latest entrant in the Indian mutual fund space, and it has some good news for eco-friendly investors.
The company has devised a plan under which investors would receive all communication from the fund company—such as account statements, portfolio statements, etc.—through email or SMS. No paper will be used. This plan will be available for those investing up to Rs2 lakh.
This may turn out to be a win-win situation for both investors and the company. Investors won’t have to maintain thick files containing the communication from the fund house, and the company will save on the cost of paper and postage.
Savings to the company through this plan will be passed on to investors as a 0.25% reduction in recurring expenses.
This means that if a person invests Rs1,000 per month through a systematic investment plan for five years, he can save up to Rs500, considering a conservative rate of return of 10% per annum. This may not seem much for an investment of Rs60,000 over the five-year period but, if one wants to go green, it is better than nothing.