HDFC Mutual Fund Converts Closed-End Fund into Open-Ended
In India, HDFC Mutual Fund is the largest and most actively managed equity mutual fund house. As of March 2018, this is the most successful and best money-making AMC in India. According to the source, the mutual fund has launched a scheme as housing opportunities fund series – 1. It is a closed-ended equity fund. Moreover, the scheme maintains around Rs. 3,800 crores assets from the launch of the scheme.
Now, the fund house is converted the closed-ended scheme into an open-ended scheme. As per the reports, the schemes will convert to an open-ended scheme before the maturity of the scheme.
The fund house has launched Housing Opportunities Fund Series-1 in the month of November 2017. Moreover, the scheme will mature in January 2021.
As per the reports, the scheme will remain continues its activities without any conditions. Moreover, it offers a chance to the new investors for making investments into this underperforming scheme.
The HOF Series – 1 scheme locked in for three years. During this period, the investors have lost approximately 1.14% annually.
However, the existing shareholders have the chance to exit from this underperforming scheme at the current net asset value. Investors who want to exit from this scheme will exit between 18th December 2020 and 18th January 2021 without exit load.