Institutional schemes

POSTED BY Madan ON April 12, 2013 2:27 pm COMMENTS (5)


Dear Sir,

I saw some funds with different name such as

JM short term Plan – Institutional plan (G)

     JM short term Plan – Institutional plan (D)


     L&T Monthly Income Plan – Institutional Plan(G)

   Reliance Diversified Power Sector Fund – Retail Plan (D)


What exactly is a Institutional and Retail Plan ? An individual can buy Institutional and Retail Plan MF ?


5 replies on this article “Institutional schemes”

  1. Anshuk Jain says:

    Previously Institutional plan were for HNI or corporates who can park huge amount of money with the funds. They used to have low expense ratio and very high minimum investment.

    SEBI has come up with a regulation to merge all such plans (nothing to do with the advent of direct plans; these are two different regulations).

    Few funds are merging the institutional plan into retail plan and some vice-versa. If the fund opts to keep the institutional plan, it means that the fund is not going to lower down the minimum investment.

    1. Ramesh says:

      No, thats wrong. The merged institutional plan will be available for everybody, from HNI to retail, though the minimum amount could be a bit steep, eg from 5k to 10k. The only difference which was there between an institutional plan and retail plan was the commission structure, and the institutional plan was meant to minimize the commission part and for which they AMC wanted a large corpus.
      With Direct option, the commission part is gone, so there is no point in differentiating between the two plans.
      eg, Templeton Ultrashort Bond Fund – Institutional. Min requirement is 10k and not 50L/1 crore.

  2. Dear Madan, after the implementation of direct options, yes it’s hapening.



  3. Madan says:

    Individuals also can purchase the schemes ?

  4. Dear Madan, in case of direct investing now, an investor can invest in both plans. Actually Institutional plans are getting merged into regular ones now. Earlier there were different minimum investment amount norms for insitutional & retian plans.



Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.