Ch.5 · SID, SAI and KIM Documents · medium

What is the 'winding up' of a mutual fund scheme?

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EXPLANATION

Winding up involves terminating a mutual fund scheme — all portfolio securities are sold, liabilities are settled, and the net proceeds are distributed to unit holders proportional to their holdings. Winding up can be voluntary (trustee/unit holder decision) or compulsory (SEBI direction). Unit holders get their money back at the final winding up NAV.

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