Indiabulls Mutual Fund winds up 4 debt schemes
The fund house is winding up Indiabulls Ultra Short Term Fund, Indiabulls Savings Fund, Indiabulls Banking and PSU Fund and Indiabulls Income Fund
Indiabulls Mutual Fund is winding up four open ended debt schemes – Indiabulls Ultra Short Term Fund, Indiabulls Savings Fund, Indiabulls Banking and PSU Fund and Indiabulls Income Fund.
The schemes are said to be discontinued due to insufficient funds. There is a norm of maintaining a minimum Rs 20 crore assets under management in each debt fund on a half yearly rolling basis. Indiabulls Ultra Short Term has a daily AUM of Rs 17.84 crore. Indiabulls Savings Fund has a daily AUM of Rs 0.78 crore. Indiabulls Banking and PSU Fund has a daily AUM of Rs 14.54 crore. Indiabulls Income Fund has a daily AUM of Rs 16.35 crore.
The fund house had discontinued these schemes for any further subscription and redemption with effect from November 23.
Similarly worded four addendums pertaining to the four debt funds have been released by Indiabulls MF.
“Pursuant to Regulation 41 (1) of SEBI (Mutual Funds) Regulations 1996, a meeting of the unit holders of the Scheme will be held on Monday, December 7, 2020 at 5:00 pm at 18th Floor, Tower 1, One International Centre, Prabhadevi (W), Mumbai – 400 013,” the fund-house said.
The meeting of the unit holders will decide on approving by simple majority of the unit holders present and voting at the meeting, a resolution for authorizing the Trustees or any other person so authorized by the Trustee to take steps for winding up of the Scheme.
The Trustee or the person so authorized will dispose-off the assets of the Scheme in the best interest of the unitholders.
The sales proceeds after discharge of all liabilities and expenses will be paid to the unitholders in proportion to their respective interest in the assets of the scheme.
This is the second AMC to wind up schemes after Franklin Templeton Mutual Fund announced the winding up of six debt schemes in April 2020. The matter is currently in court, while the AMC has announced its plans to seek an unitholder vote for the winding of the schemes as per Supreme Court direction last week. Franklin debt funds issue is different from Indiabulls in size and scale as it involved about Rs 26,000 crore in AUM and 300,000 customers.