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Axis Mutual Fund and Aditya Birla Mutual Fund have withdrawn two of their new fund offers as they failed to garner the minimum amount of ₹10-20 crore to complete the NFO.
According to SEBI regulation, debt funds and balanced advantage funds have to collect a minimum of ₹20 crore and NFOs, ₹10 crore. The two NFOs — Aditya Birla Sun Life Crisil IBX SDL Sept 2028 index fund and Axis S&P 500 ETF Fund of Fund — closed on April 5. The money collected during the NFO period will be withdrawn to investors.
The recent government decision to withdraw long-term capital gain tax benefit from April 1 for funds investing not more than 35 per cent in domestic equity shares had affected the sentiment of investors, said a distributor. The government has provided three years grandfathering facility for investments made before March 31. This resulted in investors pouring in about ₹45,000 crore in debt-oriented funds, he added.
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