Two Birla debt funds stop inflows
Aditya Birla Sun Life Mutual Fund has decided to temporarily stop accepting fresh subscriptions for two of its debt schemes with effect from Friday.
The two schemes are Aditya Birla Sun Life Medium Term Plan, which invests in instruments with a duration of 3-4 years, and Aditya Birla Sun Life Credit Risk Fund that predominately invests in AA and below rated corporate bonds.
In a notice on Thursday, the fund house said to protect the interest of investors, it has decided to temporarily suspend the acceptance of fresh subscriptions or switch-in applications in the two schemes with effect from May 22, 2020, till further notice. Further, no fresh registration under the systematic investment plan (SIP) will be accepted.
“We have stopped taking additional money in our credit-oriented funds — Medium Term Plan and Credit Risk Fund. We believe that there are substantial gains in our funds which would be realised by the existing investors over next few months,” the fund house said in a statement.
“As we do not wish to dilute this for existing investors by taking more money in these funds, we have stopped fresh subscriptions in these funds. This is done in the interest of investors,” it added.