The Luxembourg-domiciled Sicav, managed by Tata Asset Management, will be liquidated on 3 August.
“The board took the decision to liquidate the fund because of low assets, the net assets of the fund have fallen to $16.8m [£10.8m] as at 31 March 2012, and no significant recent or expected inflows because of legal uncertainty in the light of a tax change in India,” Henderson said.
“It therefore is expensive to run such low assets with an uncertain future and that it is in the best interests of shareholders to liquidate the sub-fund.”
The fund has fallen in line with the wider Indian equities sector, down 21% in the past 12 months, according to FE analytics. Over the past three years it delivered 16% returns.
