Aditya Birla Sun Life Mutual Fund is giving an option to investors in seven 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.
However, the fund house has said that those investors who do not give their consent for rolling over will get the redemption proceeds on the original maturity date.
Rolled over mutual fund are:
- Aditya Birla Sun Life Fixed Term Plan – Series OZ (1187 days),
- Aditya Birla Sun Life Fixed Term Plan -Series PA (1177 days),
- Aditya Birla Sun Life Fixed Term Plan – Series PC (1169 days),
- Aditya Birla Sun Life Fixed Term Plan – Series PF (1148 days),
- Aditya Birla Sun Life Fixed Term Plan – Series PK (1132 days),
- Aditya Birla Sun Life Fixed Term Plan – Series PI (1140 days),
- Aditya Birla Sun Life Fixed Term Plan – Series PJ (1135 days).
Who are not eligible?
Unitholder(s) who do not submit the duly filled consent form within the aforesaid timeline will not be entitled for extension of maturity and their investments in the Schemes shall be redeemed on the “Original Maturity Date.
what is fixed maturity plan?
FMPs are close-ended schemes that come with a specified tenure. Simply put, your money is locked in and can be liquidated only on maturity.
FMPs usually buy and hold till maturity and that is why there is a high chance of earning the returns indicated at the start.
Distributor View
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.
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(Reported by Economic Times)
