Aditya Birla Sun Life Mutual Fund rolls over seven FMPs

Aditya Birla Sun Life Mutual Fund has rolled over seven FMPs which had been maturing within the month of April, 2021. The scheme maturities have been pushed to finish of 2022 and a few in the midst of 2023. However, the fund home has stated that these traders who don’t give their consent for rolling over will get the redemption proceeds on the unique maturity date.

The seven FMPs which might be being rolled over 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).

“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”. Such Unitholders shall receive the redemption/maturity proceeds based on the applicable Net Asset Value as on the Original Maturity Date of the respective Schemes” stated the fund home in a letter to traders.

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The fund home stated that the roll over of maturity in these seven FMPs is due to the low yields. “Owing to low yields at offer to investors, it will be prudent for existing investors to make maximum use of the indexation benefit and opt for extending their investments in the above mentioned Fixed Term Plans. Further, the massive bond rally in the previous year fueled by aggressive rate cuts and accommodative stance of the RBI has pushed rates lower. Therefore, re-setting of maturities will offer an opportunity for investors of the respective Scheme(s) to get an extended Long Term Capital Gain benefit for their current investments,” says the fund home.

FMPs are close-ended schemes that include a specified tenure. Simply put, your cash is locked in and will be liquidated solely on maturity. FMPs often purchase and maintain until maturity and that’s the reason there’s a excessive probability of incomes the returns indicated at the beginning. By that logic the scheme would have earned the specified returns. We tried to get a response from ABSL. However, not one of the spokesperson was obtainable for a remark.

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