HDFC MF merges three fixed maturity plans with two open-ended funds

HDFC Mutual Fund has announced the merger of three Fixed Maturity Plan (FMP) – HDFC FMP- Series 42-1381D September 2018 (1), HDFC FMP- Series 42-1372D September 2018 (1) with HDFC Corporate Bond Fund and HDFC FMP- Series 43-1344D October 2018 (1) with HDFC Medium Term Debt Fund.

The effective date of the merger for the first two FMPs is June 30, 2022 and for the third FMP mentioned above, the date of the merger is June 28, 2022.

As per SEBI categorisation of funds, corporate bond funds invest in 80% of total assets only in the highest-rated corporate bonds. While the medium duration fund makes investments in debt & money market instruments such that the macaulay duration of the portfolio is between 3 years – 4 years.