IDFC Mutual Fund has suspended the sale of units of IDFC Arbitrage Plus Fund with effect from August 24, says an addendum on IDFC MF’s website.
Currently, IDFC Arbitrage Plus Fund has AUM of Rs.663 crore.
In the addendum, the fund house said that it would not receive new investments through both lumpsum and SIP route in IDFC Arbitrage Plus Fund. “Consequently, fresh purchase, additional purchase, new SIP registration, switches with IDFC Arbitrage Plus Fund as the target scheme, new dividend sweep registration with the fund as the target scheme is suspended until further notice,” said the fund house.
However, the scheme will continue to accept inflows from existing SIP, STP and dividend reinvestment. It will also accept switches within plans.
Citing changes in fundamental attributes for this suspension, Vishal Kapoor, CEO, IDFC MF says, "Fresh investment to the fund has been stopped as the scheme will be undergoing changes in its fundamental attributes. As it is going through a change, it will be better to restrict new investors from investing in this fund. We will start taking fresh inflows once the changes are in place which may take over a month."
Few small and mid-cap funds have earlier stopped fresh inflows into their schemes citing lack of buying opportunities. On February, DSP BlackRock Mutual Fund suspended the sale of units in DSP BlackRock Micro Cap Fund.
IDFC Mutual Fund manages AUM of Rs.61,361 crore as on June 2017.
