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AXIS, ADITYA BIRLA MFS WITHDRAW 2 NFOS

Published on Apr 12, 2023 13:01

Axis Mutual Fund and Aditya Birla Mutual Fund have withdrawn two of their new fund offers (NFOs) due to their inability to collect the minimum amount required to complete the NFO process. The Securities and Exchange Board of India (SEBI) mandates that debt funds and balanced advantage funds must collect a minimum of Rs 20 crore, and NFOs must collect Rs 10 crore.

The two NFOs -- the Aditya Birla Sun Life Crisil IBX SDL Sept 2028 index fund and the Axis S&P 500 ETF Fund of Fund -- closed on 5 April 2023. The money collected during the NFO period will be re-distributed to investors.

The sentiment of investors has been affected by the recent government announcement to terminate long-term capital gain tax benefits for funds investing less than 35% in domestic equity shares from 1 April. Nevertheless, investors who made investments before 31 March 2023 can benefit from the government`s three-year grandfathering facility.

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