IDBI Mutual Fund has filed an offer document with SEBI to launch an open ended dedicated gilt scheme called IDBI Gilt Fund.
The fund’s objective is to provide regular income along with capital appreciation. It seeks to achieve this objective through investments in a diversified basket of central government dated securities, state government securities and treasury bills. The fund will be managed by Gautam Kaul.
Being a dedicated gilt fund, the scheme has the option of availing RBI liquidity support through reverse repos. It will refrain from investing in securitised debt/ADRs/GDRs and foreign securities.
The fund seeks to collect a minimum subscription amount of Rs 20 crore through the NFO of the scheme. It offers growth and dividend options. The dividend option comes with dividend payout and reinvestment at quarterly and yearly intervals. The fund will have a variety of facilities to offer such as SIP, STP, SWP, Dividend Sweep Plan and Fixed Tenor Trigger Plan. It will be managed actively and investors are expected to invest with a 12-month horizon. The scheme does not have an entry load. An exit load of 0.5% will be charged.
