Home »  Money

HDFC MF launches second series to raise funds for free cancer treatment

Tuesday, 4 March 2014 - 6:00am IST | Place: Mumbai | Agency: dna

Having tasted the success of generating income for donations to treat cancer patients free of charge, HDFC Mutual Fund (HDFCMF) has launched a second series of its close-ended HDFC Debt Fund for Cancer Cure 2014 (HDFCC14) that will close March 11, 2014, a day after its first series gets redeemed.

The unique concept launched by HDFC MF in 2011 came in after rounds of deliberations concluded only predictable amount of money would ensure proper planning on the number of patients that could be treated or admitted for free at charity hospitals.

"Rather than awaiting random flow of funds through donations we thought a steady flow of money could help hospitals plan their 'free treatment' across the seven hospitals, including Tata Memorial Hospital, the Indian Cancer Society has tied up with," said Milind Barve, HDFC MF's managing director.

The earlier scheme, that is due for redemption on March 10 this year, raised Rs 80 crore in March 2011 and has so far donated an average of Rs 4.3 crore per annum and is expected to touch Rs 13 crore when the scheme is redeemed, Barve said. The annualised rate of return works out to be 9.3%.

"These hospitals have got some assurance of a steady fund flow in dividends. We have succeeded in giving them a little over Rs 2 crore every six months, thanks to the generosity of our investors," Barve said.
We hope to repeat the same in the new scheme too and have a target of garnering a corpus of Rs 100 crore this time, he said.

HDFCMF hopes the fund will be able to generate at least Rs 5 crore in dividends every six months for the cancer cure cause and it will also contribute an equal amount in donation to the Indian Cancer Society.

The minimum amount for investment in HDFCC14 is Rs 50,000.

In a bid to add further to the contribution of investors' dividends, the fund would also not levy any investment and advisory management and would also bear the distribution and marketing costs. HDFCMF's second series will have the same characteristics of the first one where investors still earn a return if they opt to by parting with 50 % of the dividend or donate the entire 100% and also get the benefit of tax exemption under 80G..

The debt fund scheme has been rated by Icra with AAAmfs(SO), indicating the highest degree of safety regarding timely payments from the investments.

Jump to comments

Recommended Content