HDFC Mutual Fund on Wednesday introduced a break up within the face worth of three of its alternate traded funds (ETFs) from 19 February.
HDFC Sensex and HDFC Nifty 50 ETF will likely be break up by one-tenth every, whereas HDFC Gold ETF will likely be break up within the 1:100 ratio. The latter will symbolize 0.01 gm of gold as an alternative of 1 gm of gold.
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Mutual funds normally go for splits to make their merchandise extra reasonably priced to small buyers. However, a break up by itself causes no loss or achieve to buyers and it is worth is impartial. The NAV of the ETFs will fall on the file date.
Correspondingly, unit holders of the ETFs whose names are within the information of depositories as on 19 February will get a proportionate credit score.
For instance, for those who maintain 10 items of HDFC Gold ETF, your holding will enhance to 1,000 items by the fund home. The new items will likely be credited on 22 February by the AMC, it stated in an alternate submitting.
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