The Peerless Mutual Fund allows you to invest liquid cash in Mutual Fund. This is to attract those customers who are not using banking facility. They are allowed to buy retail mutual fund schemes through selected branches of Allahabad Bank.
Under this scheme an investor can invest liquid cash up to Rs. 20000 in a mutual fund a financial year. The investor is allowed to invest up to Rs. 20000 in mutual funds every year if he likes to do so. This is allowed as per the guidelines of SEBI (Securities and Exchange Board of India).
As per the words of one of the senior officials of the Peerless Funds Management Company, the Mutual Fund House aims to cater the un-banked customers in tier-III and tier-IV locations through this move.
In the first phase this cash investment facility of the mutual fund will be available soon through selected branches of Allahabad Bank and wish to extend gradually to 2500 branches all over India.
The company says that the liquid cash investments will be added to non-requirement of PAN for such investors will make mutual funds popular among rural and semi urban areas.
But it is not sure that whether KYC is required or not for this cash investment in mutual funds.
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