HDFC’s mutual fund company has refused to accept new investments in one of its schemes. You will not be able to invest money from 22 July. What will be its effect on old investors? On 9 July, HDFC Mutual Fund announced that from 22 July it will not be able to accept new SIP investments in its defense fund.
HDFC Defence Fund: 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 scheme of a mutual fund. There will be no new registrations for it from July 22. The mutual fund company of HDFC Group has clarified that from July 22, it will not accept new investments in its scheme. Actually, it has been decided to stop new investments in HDFC’s Defense Mutual Fund.
Will not be able to invest in this scheme of HDFC, why was the decision 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 close lump sum and systematic transfer plan in this fund. HDFC Defense Fund is considered a highly concentrated fund. It has 21 stocks, in which 63 percent weight is surrounded by only five stocks. The money of this fund is invested in defense or related companies. HDFC launched the Defense Fund on 2 June 2023. Its AUM reached Rs 3,665.95 crore. This fund of the company got tremendous response from the people. Now the company is closing it, because experts believe that there is less liquidity and less investment options.
What will happen to the old investors
HDFC has clarified that after July 22, there will be no new investments 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 among 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 already in place, 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.
