Mumbai, Feb 8 (PTI) Amidst a growing interest inphilanthropy, HDFC Mutual Fund today announced the launch ofan unique debt product to support needy cancer patients, afirst for the AMC industry.
Dividend earned under the product christened HDFC DebtFund for Cancer Cure, a three-year close-ended capitalprotection oriented income scheme, will be donated to theIndian Cancer Society, HDFC''s charity of choice.
"At an individual level, people want to give back tosociety but do not know where to go. A doctor serves societyby treating patients free, we will use our distributionnetwork to get good subscriptions for the scheme and help thecause," HDFC''s Chairman, Deepak Parekh, told reporters heretoday.Parekh said there are two categories of the product --one in which 50 per cent dividend is given to charity and theother where the entire dividend is donated. At the end ofthree years, the investor will get back the entire principalwith the dividend, if applicable.
HDFC MF has launched the product to commemorate its 10thanniversary and had to take special permission from thecapital market regulator Sebi before it launched the product.
The offering will be open for investors between February18 and March 4 and the minimum application amount is Rsone-lakh. HDFC will not charge any fees for the investment.
The dividend amount donated to the society will get taxbenefits and HDFC will also try to convince corporates andother trusts to invest in the scheme, Parekh said.
The move comes within weeks of Indian business leaderslike HCL''s Shiv Nadar and Wipro''s Azim Premji making headlinesfor donating substantial amounts to various charities,creating a right traction for social causes.