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Navi Mutual Fund to Wind Up One of its FundsNavi Mutual Fund (Navi MF), which is owned by Flipkart co-founder Mr. Sachin Bansal, announced on Monday 15 June 2021 the winding up of its arbitrage fund. The primary reason for windup is due to the low assets accumulated, Rs. 14.16 Lakhs as of 31 May 2021 due to which it would be a loss-making proposition for Navi MF and uneconomical to continue with. The Navi group had purchased the mutual fund business of the Essel group in February 2021 and renamed it. The current assets are those which have been acquired from the previous owner.

Another reason for the windup is that the arbitrage scheme would not be fitting in the strategy proposition of Navi MF as they stated that their focus is on passive products such as index funds and ETFs rather than actively managed schemes. They have also filed with the Securities and Exchange Board of India for a Nifty 50 Index Fund.

For the windup, 50% of votes will decide if it is approved or not and. It was also announced that votes which are not cast will be deemed in favor of the windup. Unitholders of the scheme can cast their vote via email, SMS or post and have to do so by 17 July 2021. The registrar and the transfer agent for the fund house, KFintech will provide the pertaining links and unitholders who wish to vote by post can download the form from the Navi Mutual Fund website.