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HDFC Mutual Fund has launched a unique debt fund that gives investors the option to donate 50 per cent or 100 per cent of the dividend to Indian Cancer Society
Mumbai: HDFC Mutual Fund has launched a unique debt fund that gives investors the option to donate 50 per cent or 100 per cent of the dividend to Indian Cancer Society. The fund house will not charge any investment and advisory fee to the scheme.
The second largest fund house is offering HDFC Debt Fund for Cancer Cure to mark completion of 10 years of its operations. The fund is a three-year close ended capital protection oriented income scheme.
The fund will invest predominantly in highly rated debt, money market instruments and government securities in order to provide capital protection to the investors. The investment pattern will be as follows:
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Instruments |
Indicative allocations
(% of total assets) |
Risk Profile |
|
|
Minimum |
Maximum |
|
|
Debt Instruments |
80 |
100 |
Medium |
|
Money Market Instruments |
0 |
100 |
Low to Medium |
|
Government Securities |
0 |
20 |
Low to |
NFO Period: February 18, 2011 to March 4, 2011.
Target Investors: The scheme is targeted at corporate and HNI investors. The minimum subscription amount is Rs 1,00,000. “Companies are showing interest. Companies can show this in their investment portfolio as debt investment. The product is an attempt to gainfully combine the asset management and distribution capabilities of HDFC AMC towards a charitable cause” said Milind Barve, Managing Director, HDFC Mutual Fund.
Distribution Strategy: The fund house plans to distribute the fund through distributors, banks and direct through its website. The fund house has more than 25,000 IFAs empanelled with it. “I am sure at least the top few thousand IFAs would get investments,” Barve said. The fund house also plans to run advertisement campaigns in the print media.
Empanelled IFAs: More than 25,000
AUM of the fund house: Rs. 87,883 crore at the end of December 2010
Rating: “AAA (so)” rating assigned by CRISIL
Tax Benefit: The investor will be eligible for deduction under Section 80G of the Income-tax Act, 1961 to the extent of the amount donated to the Indian Cancer Society from the dividends declared under the scheme.
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