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Monday 20 September 2021
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Aditya Birla MF Seeks to Reset Maturity of Seven Fixed Plans

Aditya Birla Sun Life Mutual Fund has proposed to reset the maturity date of seven of its fixed maturity plans (FMP) that are coming up for redemption in the coming financial year between April 5 and April 20.

These schemes collectively manage ₹2,800 crore as of February.

In a communication to investors, the fund house said, “Owing to the low yields at offer to investors, it would be prudent for existing investors to make maximum use of the indexation benefit and opt for extending their investments.”

For investors who give their consent, the maturity date will be extended by about 1.5 -2 years. The revised maturity date for each scheme is different and will be between October 2022 and April 2023. Investors who do not opt for resetting their maturity will get their money back, the fund house said.

Financial planners believe investors who have a time frame of two years could opt for this reset.

For investors with a time frame of more than five years, financial planners suggest withdrawing money from these FMPs.

A circular by the Central Board of Direct Taxes states that roll-over of fixed maturity plans will not be considered as transfer, switch or redemption of funds from a particular scheme. So, it will not attract tax on capital gain at that juncture, if an investor decides to continue with the scheme. The decision brings respite to many existing FMP investors.




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