This mutual fund scheme will be closed next week, have you also invested?

New Delhi: Leading mutual fund house HDFC Mutual Fund has announced a ban on one-time subscription and individual transactions in its HDFC Defense Fund a few days later. The fund house will implement this change from July 22, while the last date for allocation in HDFC Defense Fund is July 22. HDFC Mutual Fund has announced that it will stop taking requests for registration for Systematic Investment Plan (SIP) in the scheme from July 22, 2024. Apart from this, there will also be a ban on new lump sum investments in the scheme, including switch-in and new individual transfer registrations.

This plan has been discontinued

Let us tell you that the process of Systematic Investment Plan (SIP) registered before 22 July 2024 will continue. Apart from this, the already registered individual transaction process will also continue. The fund house further said that there is no ban on redemption/switch-out/STP-out.

HDFC Defense Fund gave strong profits

HDFC Mutual Fund, which raised Rs 1,000 crore in a new fund offer (NFO) dedicated to investing in defense-related companies, has stopped lump sum investments in the scheme from June 12, 2023. HDFC Defense Fund, launched on June 2, 2023, has given a return of 114.47% since its inception. In the last one year, the scheme has given a compound annual growth rate (CAGR) return of 121.99%, while during the last 3 and 6 months it has given a return of 33.02% and 52.22% respectively.

This mutual fund scheme is benchmarked against Nifty India Defence – TRI. Nifty India Defence has given a CAGR return of around 169.91% in the last one year. Apart from this, the benchmark has given a return of 52.25% and 79.23% in the period of 3 and 6 months respectively.

A SIP of Rs 10,000 would have become Rs 2.19 lakh at this time

It is worth noting that a monthly SIP investment of Rs 10,000 in this fund at the time of launch has now become Rs 2.19 lakh with an XIRR of 132.84%. In simple words, if you had invested Rs 10,000 every month in this fund, it would have become Rs 2.19 lakh by now.