New Delhi:
HDFC Mutual Fund, part of India’s largest private sector bank, HDFC, has announced the closure of its Defense Fund scheme, effective July 22.
No New Investments Accepted
From July 22 onwards, HDFC Mutual Fund will stop accepting new registrations and investments into its Defense Fund.
This decision marks the end of new investments in the fund.
Reasons for Closure
The decision to close the Defense Fund stems from concerns over liquidity and limited investment opportunities in the market,
according to experts.
Fund Performance and Impact
The HDFC Defense Fund, launched on June 2, 2023, amassed assets under management (AUM) of Rs 3,665.95 crore.
Despite its popularity and significant returns of approximately 144 percent over the past year, the fund’s closure was driven by strategic considerations.
Impact on Existing Investors
Existing investors in the HDFC Defense Fund need not worry. While no new investments will be accepted after July 22, current investors can continue their investments and withdrawals as usual.
SIPs and other existing investment plans will remain unaffected.
Continuation of Investments
Investors who have already committed to the HDFC Defense Fund can rest assured that their investments will continue without disruption.
The fund’s closure only affects new investors, ensuring existing investors can manage their investments seamlessly.
