look news india
The mutual fund company of the country's largest private sector bank HDFC has given a big update. The bank has announced the closure of a mutual fund scheme. There will be no new registration for it from July 22. HDFC The group's mutual fund company has clarified that it will not accept new investments in its scheme from July 22. In fact, it has been decided to stop new investments in HDFC's Defense Mutual Fund.
You will not be able to invest in this scheme of HDFC, know why this decision was taken
On July 9, HDFC Mutual Fund announced that from July 22, it will not be able to accept new SIP investments in its defense fund. The company has also decided to discontinue lump sum and systematic transfer plans in this fund. HDFC Defense Fund is considered a highly concentrated fund. It has 21 stocks, with 63 per cent weight of only five stocks. The money of this fund is invested in defense or related companies. HDFC launched the Defense Fund on June 2, 2023. Its AUM reached Rs 3,665.95 crore. This fund of the company received tremendous response from the people. Now the company is shutting it down, as experts believe that there is less liquidity in it and there are fewer investment options.
What will happen to old investors?
HDFC has clarified that after July 22, there will be no new investment in the Defense Fund, but its existing investors will remain. Only investments of existing investors will be accepted. Last year, this fund was at the top of the funds giving the best returns. It has given investors a return of about 144 percent in a year. The company has clarified that the investments already in this fund, the SIPs that are already there, will continue as before. Investors who have already invested in this fund will be able to continue investing and withdrawing as before. There will be no change for them. That is, if you have invested money in this fund, then you do not need to worry.
