Implications of a Mutual Fund Scheme Closure

What happens if a mutual fund scheme closes down?

If a mutual fund scheme winds up or closes, the assets of the scheme are liquidated. Following this, the proceeds are distributed to the unit holders in proportion to their holdings, based on the prevailing Net Asset Value (NAV) after deducting the relevant expenses. Furthermore, mutual funds are obligated to provide a report on the winding up to the unit holders, detailing the reasons for closure, the winding-up process, and the distribution of assets.

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