IDBI Mutual Fund has launched an open ended debt scheme called IDBI Short Term Bond Fund
MUMBAI: Fixed income funds seem to be the flavor of the season as interest rates head northwards and equity markets continue to remain jittery. IDBI Mutual Fund has today announced the launch of its open ended IDBI Short Term Bond Fund to capture this mood.
NFO Date: March 17, 2011 to March 22, 2011.
Investment objective: The scheme aims to provide investors with regular income for their investment. The Scheme will endeavour to achieve this objective through an allocation of the investment corpus in a diversified portfolio of debt and money market instruments.
Asset Allocation: The scheme would allocate 65 to 100 per cent of assets in money market instruments/ debt instruments with maturity/residual maturity up to and including 2 years with low risk profile. The scheme would further allocate up to 35 per cent of assets in debt instruments with low to medium risk profile.
Minimum Application: Rs 5,000
Investor need it seeks to fulfill: “It is both an accrual as well as mark-to-market risk reward product. It is positioned to give higher returns than liquid or ultra short term funds given the high interest rate scenario in sub one year segment,” said Krishnamurthy Vijayan, MD & CEO, IDBI Mutual Fund.
Target Investors: The fund is targeted at all segments of investors looking at an investment horizon of 6 months to 1 year.
Distribution: The fund would be marketed mainly through IFAs, national distributors and corporates. The fund would be available pan-India.
Empanelled IFAs: Approximately 3,000
Exit Load: 0.50 per cent if units are redeemed within 3 months from the date of allotment.
Fund Manager: The scheme will be managed by Gautam Kaul
Benchmark: Crisil Short Term Bond Fund Index
