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Mumbai27 minutes ago
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Birla Mutual Fund has said that investors who do not agree to extend the date can withdraw money. FMPs are basically closed schemes that are only for a fixed period of time.
- The date of these seven schemes was to be completed in this month
- These seven schemes were launched in the year 2018.
Aditya Birla Sun Life Mutual Fund has decided to roll over 7 fixed maturity plans (FMPs). That is, their maturity date has been extended further. These schemes were to be completed in this month. Now their maturity will be in 2022 and 2023. All these schemes were launched in the year 2018 in January, February and March.
Investors who do not agree can withdraw money
However, Aditya Birla Sun Life Fund has said that investors who do not agree with it, can withdraw their money in the same month on the date of maturity. Among the 7 FMPs that have been decided to extend the maturity date are fixed-term plans – 1187 days, 1177 days, 1169 days, 1148 days, 1132 days, 1140 days and 1135 days. The date of these schemes has been extended from 553 days to 783 days.
Can take advantage of increased maturity date
The fund house has said in a letter to investors that the unit holders who have not given their approval for the new date of this maturity will not get the benefit of the increased maturity date. With this, they will get the money of their unit on the earlier date. This money will be given on the basis of the net asset value of that day.
Extended date due to low returns
The fund house has said that the date of these seven schemes has been extended because all of them have low returns. Instead of paying less interest to the investors, the present investors should be given the benefit of indexation and their investment should be extended for some more time. Last year, interest rates were cut due to the steep rise in bonds, which the Reserve Bank kept low. This will give investors a good opportunity in these schemes in the long term with the re-setting of maturity. Also, capital gains will also be available.
Closed schemes are FMP schemes
FMPs are basically closed schemes that are only for a fixed period of time. That is, you can invest your money for a fixed time and you can withdraw it only on completion of time. In most cases the returns of the FMP scheme scheme are known at the outset. Earlier, many fund houses had extended the dates of their schemes in a similar manner. Recently HDFC Mutual Fund also extended the date for some FMP schemes in a similar manner.