HDFC MF decides to wind up 3 fixed maturity plans after unit holders give nod
The fund house plans to wind up HDFC FMP 370D April 2014 (1), HDFC FMP 366D April 2014 (1) and HDFC FMP 377D March 2014 (1)
HDFC Mutual Fund has decided to wind up 3 fixed maturity plans under HDFC Fixed Maturity Plans Series 31 post approval from unit holders, the fund house stated in a notice today.
The fund house plans to wind up HDFC FMP 370D April 2014 (1), HDFC FMP 366D April 2014 (1) and HDFC FMP 377D March 2014 (1). All three schemes were extended twice with the consent of unit holders.
The net assets of all 3 schemes are below Rs 10 crore which is making it unviable for the fund manager to manage the FMPs.
The notice further stated: "To approve by simple majority of unit holders present and voting at the meeting, a resolution for authorising the Trustee or any other person so authorised by the Trustee to take steps for winding up of the scheme."
The corpus of the schemes is currently invested in cash and cash equivalents.The scheme will be wound up under 39(2)(a) of SEBI (Mutual Fund) Regulations 1996 which states that "on the happening of any event which, in the opinion of the trustees, requires the scheme to be wound up."