The barring of subscriptions is effective from May 22, 2020. Apart from fresh subscriptions, switch-in applications, fresh registration of systematic plans have also been stopped in the schemes till further notice.
Meanwhile, redemptions will continue for the existing investors.
“This is a good move. The asset size of schemes had dropped and some investors have exited, but paid price of liquidity as they have exited at NAVs that accounted for the mark-down impact,” said Amol Joshi, founder of Plan Rupee Investment Services.
“However, smart money can still benefit from the recovery by entering in the schemes with few days of holding period,” he added.
The assets under management (AUM) of Birla Sun Life Credit Risk Fund stood at Rs 2,016 crore at the end of May 20, 2020, while that for Medium Term Plan stood at Rs 2,144 crore.