HDFC's mutual fund company has refused to accept new investments in one of its schemes

You will not be able to invest money in this scheme of HDFC, new investment will be closed from July 22, what will be the impact on existing investors?

HDFC's mutual fund company has refused to accept new investments in one of its schemes. You will not be able to invest money from 22 July. What will be its effect on old investors? On 9 July, HDFC Mutual Fund announced that from 22 July it will not be able to accept new SIP investments in its defense fund. 

HDFC Defence Fund: The mutual fund company of the country's largest private sector bank HDFC has given a big update. The bank has announced the closure of a scheme of a mutual fund. There will be no new registrations for this from July 22. The mutual fund company of HDFC Group has clarified that it will not accept new investments in this scheme from July 22. In fact, it has been decided to stop new investments in HDFC's Defense Mutual Fund.

You will not be able to invest in this scheme of HDFC, why did you take this decision?  

On July 9, HDFC Mutual Fund announced that from July 22, it will not be able to accept new SIP investments in its defense fund. The company has also decided to discontinue lump sum and systematic transfer plans in this fund. HDFC Defense Fund is considered a highly concentrated fund. It has 21 stocks, of which 63 percent weight is concentrated in just five stocks. The money of this fund is invested in defense or related companies. HDFC launched the Defense Fund on June 2, 2023. Its AUM reached Rs 3,665.95 crore. This fund of the company got a tremendous response from the people. Now the company is shutting it down, because experts believe that there is less liquidity and fewer investment options.  

What will happen to old investors?  

HDFC has clarified that after July 22, there will be no new investments in the Defense Fund, but its existing investors will remain. Only investments from existing investors will be accepted. Last year, this fund was at the top among the funds giving the best returns. It has given investors a return of about 144 percent in a year. The company has clarified that the investments already in this fund, the SIPs already in place, will continue as before. Investors who have already invested in this fund will be able to continue investing and withdrawing as before. There will be no change for them. That is, if you have invested money in this fund, then you do not need to worry.