Birla Mutual Fund gives rollover option in six fixed maturity plans


2021-04-08 22:30:00

MUMBAI: Aditya Birla Sun Life Mutual Fund is giving an option to investors in six of its fixed maturity plans (FMPs) to roll over their investments in these funds for one or two years. Those who want to take their money out will get it on the pre-scheduled date of closure, while those who wish to continue to invest will have to send applications to the fund house for rollover.
The FMPs, which are closed-ended schemes with a fixed date of maturity, were launched in January 2018 and are set to close this month.
The fund house is giving this option to its FMP investors since existing investors have already made good money in these funds because of the rally in bond prices last year and can now enjoy some more indexation benefits if they decide to continue their investments in the same schemes. The options are being given at a time when alternate investment options are available at low rate of interest, A Balasubramanian, CEO, Aditya Birla MF, said.
According to mutual fund distributors, the fund house is extending the schemes at an expected rate of about 4.65% and the same quality of papers in its portfolio, which are mostly AAA, for this extension but with investors’ consent. Investors will get the indexation benefits for this period. None of the papers in the portfolios of these FMPs have any issue, they said.



Source link

Leave a Reply