Essel Mutual Fund announced the winding up of Essel Flexibility Income Fund with effect from 14 August 2018.
‘Essel Mutual Fund Trustee Limited has decided to windup Essel Flexibility Income Fund, an open ended dynamic debt scheme investing across duration of Essel Mutual Fund, with effect from 14 August 2018’, the statement on their website read.
According to the sources cited by MoneyControl, Essel Flexibility Income Fund did not meet the SEBI norms for minimum Asset Under Management (AUM). As per SEBI standards, all open-ended and debt oriented schemes must hold a minimum of ₹ 20 cr worth assets under management at all times.
Essel Flexibility Income Fund is an open ended scheme and it currently holds ₹ 0.29 cr worth assets under management. The quarterly dividends stood at 13.937.
Flexible income fund
A mutual fund that invests in several types of bonds, including high-yield corporate bonds, foreign bonds, and U.S. government bonds. Flexible income funds attempt to earn high current returns without being subject to the risks of a single segment of the bond market.
Open ended Fund
An open-end fund is a collective investment scheme that can issue and redeem shares at any time. An investor directly purchases the shares from the fund itself rather than the existing shareholder.