Amidst a growing interest in philanthropy, HDFC Mutual Fund today announced the launch of an unique debt product to support needy cancer patients, a first for the AMC industry.
Dividend earned under the product christened HDFC Debt Fund for Cancer Cure, a three-year close-ended capital protection oriented income scheme, will be donated to the Indian Cancer Society, HDFC's charity of choice.
"At an individual level, people want to give back to society but do not know where to go. A doctor serves society by treating patients free, we will use our distribution network to get good subscriptions for the scheme and help the cause," HDFC's Chairman, Deepak Parekh, told reporters here today.
Parekh said there are two categories of the product – one in which 50 per cent dividend is given to charity and the other where the entire dividend is donated. At the end of three years, the investor will get back the entire principal with the dividend, if applicable.
HDFC MF has launched the product to commemorate its 10th anniversary and had to take special permission from the capital market regulator Sebi before it launched the product.
The offering will be open for investors between February 18 and March 4 and the minimum application amount is Rs one-lakh.
HDFC will not charge any fees for the investment.
The dividend amount donated to the society will get tax benefits and HDFC will also try to convince corporates and other trusts to invest in the scheme, Parekh said.
The move comes within weeks of Indian business leaders like HCL's Shiv Nadar and Wipro's Azim Premji making headlines for donating substantial amounts to various charities, creating a right traction for social causes.
Source: http://www.indianexpress.com/story-print/747574/
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