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Now you will not be able to invest in this HDFC mutual fund scheme. Will old investors also be affected?

Sagar Patel

By Sagar Patel

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HDFC will not make any fresh investments in the defence fund

The HDFC Group’s mutual fund company has announced that it will not accept money from any new investor in one of its schemes from July 22. Even investors investing through the Systematic Investment Plan (SIP) will no longer be able to avail the benefits of this scheme. After all, why has the company done this? Will it affect the existing investors in the scheme?

HDFC Mutual Fund says it will stop accepting new SIP registrations for its defence fund from July 22. However, people are already facing difficulties in making new registrations for this scheme on many brokerage platforms.

Will old investors be affected?

HDFC says that after July 22, only its existing SIP investors or Systematic Transfer Plan (STP) investors will accept investments in the defence fund. The company had launched this scheme in June last year and soon after stopped accepting investments through the lump sum route.

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SIP route closed for the first time

Generally, mutual fund houses stop investing new money in many of their schemes from time to time. Many times this is because there are fewer chances of investing new money in the same sector. Sometimes, mutual fund houses do this for other reasons as well. Recently, such restrictions have been imposed on many small-cap funds to accept new investments as well. However, this is the first time that the SIP route has been banned.

The defense fund gave so much performance

HDFC Defence Fund has a corpus of about Rs 3,000 crore. It has been at the top of the list of funds that have given the best returns in the last one year. It has given a return of about 144 per cent in one year. The money in this fund is invested in companies related to the defence sector.

Defence stocks have yielded huge returns in the last few years. The Indian government has also changed its policy in this regard. Now the focus of the government is more on export of defence goods than import.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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