As part of this transition, the IDCW option will no longer be available and the plan name will be updated to Bajaj Finserv Nifty 1D Rate Liquid ETF – Growth.
The change to the Growth option is designed to improve operational efficiency and manage plan expenses more effectively.
This means that instead of periodically distributing income to investors, the growth option will reinvest the profits.What this means for investors
Investors who prefer the IDCW option and do not agree with this change have the opportunity to redeem their units without incurring any exit charge.
This redemption window will be available until the effective date of the conversion.
Transitioning to a Growth option means investors will not receive regular income payments. Instead, any profits will be reinvested, which could be beneficial for long-term investors looking for capital appreciation rather than immediate income.
Investors should evaluate their financial objectives and investment strategies in light of this change. Those who rely on regular income from their investments may need to reconsider their position in this ETF.
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