HDFC Mutual Fund has introduced the HDFC Charity Fund For Cancer Cure in partnership with the Indian Cancer Society (ICS).
It is a closed-ended income scheme and a fixed maturity plan with a tenure of 1,196 days. The new fund offer (NFO) will open on July 28, 2023 and close on August 8, 2023.
HDFC Charity Fund For Cancer Cure
The HDFC Charity Fund for Cancer Cure provides investors with an opportunity to contribute to a noble cause while combining their investments with philanthropy. By opting for the Income Distribution cum Capital Withdrawal (IDCW) option, investors can donate the income generated from their investments to ICS. The donated amount will be used for the treatment of underprivileged cancer patients.
Investors have the flexibility to choose between 50 per cent and 75 per cent contribution of IDCW to ICS. These donations will be eligible for deduction under Section 80G of the Income-tax Act, 1961 (under the old regime). Upon receiving donations, the Indian Cancer Society will issue 80G certificates to investors based on their respective contributions.
Says Usha Thorat, hon. secretary and managing trustee, Indian Cancer Society, “This scheme, a part of the series of cancer cure funds, is making a significant difference in the lives of underprivileged cancer patients, empowering them with access to vital treatment and care.”
HDFC Asset Management Company (AMC) will match the donations made by investors with an equal amount, up to a limit of Rs. 16 crore per financial year. The AMC promises up to Rs. 5 lakh per patient and up to Rs. 8 lakh for bone marrow transplant. Additionally, the AMC has waived all investment management and advisory fees for this scheme, thus ensuring that maximum benefits go towards supporting cancer patients in need.
Says Navneet Munot, managing director and chief executive officer, HDFC AMC, “Together, as we invest in both financial growth and human well-being, we can create a future where hope and healing become accessible to all.”
NFO Details
During the NFO period, the minimum application amount is Rs. 50,000 and multiples of Rs. 1,000 thereafter. The scheme carries a relatively high interest rate risk and relatively low credit risk. It aims to generate income by investing in debt and/or money market Instruments and government securities (G-secs) maturing on or before the scheme’s maturity date.
This NFO marks the fourth edition of the cancer cure series that started in 2011. Over the years, the series has garnered a collective contribution of nearly Rs. 190 crore, including direct contributions from HDFC AMC.
