Let me explain this point. This is a closed ended that is maturing at the end of over 3 years. As of now, the NAV is at a discount so you will make a loss if you redeem. However, the fund gives you an option to roll over the amount for another 18 months so you get the benefit of the market bouncing back to growth from the lows of the COVID-19 syndrome.

Specifically, the HDFC Mutual Fund proposes to roll over closed-ended HDFC Equity Opportunities Fund – Series II by another 18 months. This fund originally had a maturity period of 1126 days i.e. a little over 3 years. The scheme has a large AUM of Rs.955 crore and the unit holders need to give consent to roll over their units by July 13.

In the absence of consent, the money will be returned to you at the extant NAV. Currently, the NAV of the fund is almost 16.62% down at Rs.8.38 against the issue price of Rs.10. The final amount realized will be lower if exit loads and other costs are factored. If you are positive on Indian equities for the long term, it is a good idea to roll over.