HDFC MF announces discontinuation of lumpsum subscription, restrictions on Systematic Transactions in NIFTY Realty Index Fund

HDFC Mutual Fund has announced the discontinuation of lumpsum subscriptions and restrictions on systematic transactions in HDFC Nifty Realty Index Fund. The scheme is an open-ended scheme replicating/tracking the NIFTY Realty Index (TRI).

The changes will be effective from April 8. The fund house informed about this change to the investors through a notice-cum-addendum.

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The fund house also stated that systematic transactions registered before the effective date shall continue to be processed.

Further, there shall be no restrictions on redemptions, switch-out, registration of fresh systematic withdrawal plan (SWAP), and STP-out from the scheme.

All other terms and conditions as mentioned in the scheme information document (SID) / key information memorandum (KIM) will remain unchanged. This addendum shall form an integral part of the scheme information document /key information memorandum of the above-mentioned scheme as amended from time to time.

The new fund offer or NFO of the scheme closed on March 21. The scheme re-opened for continuous sale and repurchase on March 26. The scheme has delivered 6.72% since its inception.

The investment objective of the scheme is to generate returns that are commensurate (before fees and expenses) with the performance of the NIFTY Realty Index (TRI), subject to tracking error. It is managed by Nirman Morakhia, and Arun Agarwal.

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The scheme provides an avenue to investors who would prefer a passive investment fund investing in companies that are constituents of the NIFTY Realty Index and is suitable for those seeking commensurate returns (before fees and expenses), over the long term, subject to tracking error and want investment in equity securities covered by the NIFTY Realty Index.

The principal invested in this scheme will be at “very high” risk according to the riskometer of the scheme.