ABSL MF Stops Fresh Subscription In Credit Risk Fund & Medium Term Plan
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Aditya Birla Sun Life Mutual Fund decided to stop taking fresh subscriptions in two of its debt schemes, Aditya Birla Credit Risk Fund & Aditya Birla Medium Term Plan.
From May 22, 2020, there will be no fresh subscriptions in these two debt funds and there will no systematic registrations too.
However, systematic transactions like SIP, STP registered before May 22 in Credit Risk Fund & Medium Term Plan will continue to be processed as usual.
This suspension of a fresh subscription is temporary. However, Investors can continue to redeem their investments as usual.
Why did This happen To Credit Risk Fund & Medium Term Plan?
This decision to suspend a fresh subscription was taken to protect the existing investors of these two schemes as the ABSL MF expects the gains from the debt instruments it had written down earlier in these schemes.
Post the lockdown they are expecting the gains from the debt instruments of these schemes which were written down earlier and had a huge impact on its performances.
Now as they are expecting a recovery from those debt instruments the fund house doesn’t want speculators to take advantage of these gains.
Therefore, to protect the existing investors they have taken this decision to suspend fresh subscriptions and is expecting gain for existing investors in the coming few months.
The Notice for same was made through Addendum No 07/2020
Hi, I’m Managing Director at Gurpreet Saluja Financial Services where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.
