HDFC Mutual Fund Halts Fresh Inflows Into Its Realty Index Fund

HDFC Mutual Fund has discontinued fresh lumpsum investments into its HDFC Nifty Realty Index fund, which was started last month.

Further, fresh systematic transaction registrations such as SIPs, and STPs shall be registered only under monthly frequency for an amount upto Rs 1 lakh per investor, it said in a statement.

The changes will be effective from April 8, and the rationale for the discontinuation was not disclosed in the notice-cum-statement.

However, systematic transactions registered prior to the effective date shall continue to be processed, the statement said. There shall be no restrictions on redemptions, switch-out, registration of fresh systematic withdrawal plans, and STP-out from the scheme.

The open-ended scheme tracking the Nifty Realty Index was open for subscription from March 7, 2024 to March 21, according to HDFC Mutual Fund website. With a very high risk, the scheme offered a regular plan and a direct plan with a growth option only.

The discontinuation comes when the Nifty Realty Index has over the last 12 months has seen a growth of 135%. The index has seen a jump of over 18% year-to-date, according to Bloomberg. DLF Ltd. has the highest weightage in the Nifty realty index with over 29%, followed by Godrej Property Ltd. and Macrotech Developers Ltd.