Mutual Fund – suspended?

POSTED BY Rajat ON June 17, 2013 8:09 pm COMMENTS (3)

Hello,

As part of my emergency funds, I had saved some money in “HDFC Floating Rate Income ST Retail Growth”. When I wanted to invest more, I could not find this fund on the HDFC website. Looking further, found on valueresearchonline that this fund is marked as ‘Suspended for Sales’. 🙁 My queries:

1) What does this mean? How can a fund holding more than 5000 Cr be suspended?

2) What should I do now; whats the suggestion. Should I redeem or transfer my units in this fund? Or leave it and invest the additional money in some other liquid fund?

3) If I leave my units in this fund as-is, then is there an issue? How long can I keep it there?

4) I searched and could not find any relevant article around this. If there is one that I can read to understand more, then request you to please point me to it.

Thanks in advance,

Rajat

3 replies on this article “Mutual Fund – suspended?”

  1. Rajat says:
    June 19, 2013 at 6:44 am

    Thanks Bharat and bemoneyaware for the info.

    Reply
  2. bemoneyaware says:
    June 18, 2013 at 11:56 am

    Many mutual fund schemes have been suspended for sale after Sebi introduced the ‘one scheme, one plan’ policy in September 2012.Fresh investments or planned SIPs in these plans were discontinued in November last year. Existing investments in the discontinued plans have been allowed to continue until they are redeemed or shifted to continuing plans.

    Hence w.e.f. October 1, 2012, HDFC Floating Rate Income Fund – STP – Retail Plan has been closed for fresh purchases/additional purchases/switch-ins. HDFC Floating Rate Income Fund – STP – Wholesale Plan will continue to remain open for fresh investments.

    Reply
  3. bharat shah says:
    June 17, 2013 at 10:16 pm

    as i understand:1. suspended for sale means the AMC for time being does not accept the subscription for that scheme for want of proper avenues to invest in for the provisions of the scheme . it may open it for accepting subscription any appropriate time in future.
    2.you can hold it till you find the return or the purpose of investing it not change. there is no risk on account of the suspension of the sale. on contrary, sometimes AMC suspends sale to maintain its performance
    3. no issue
    4. as I know, IDFC AMC used to suspend its IDFC Premier Equity mf for sale when the fund manager does not find suitable opportunities to invest as per provisions of the scheme

    Reply

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