IDBI Mutual Fund has launched a new fund named as IDBI Liquid Fund, an open ended liquid scheme. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue is open for subscription from 7 July and closes on 8 July 2010.
The investment objective of the scheme will be to provide investors with high level of liquidity along with regular income for their investment. The scheme will endeavour to achieve this objective through an allocation of the investment corpus in a low risk portfolio of money market and debt instruments.
The scheme offers two options viz. growth and dividend option. The dividend option has three sub-options (frequency of dividend declaration) - daily dividend (compulsory reinvestment), weekly dividend and monthly dividend.
The scheme would allocate 50% to 100% of assets in money market instruments with maturity / residual maturity upto 91 days. It would further allocate upto 50% of assets in debt instruments (including floating rate debt instruments and securitized debt) with maturity / residual maturity / interest rate resets upto 91 days. Investment in securitized debt would not exceed 50% of the net assets of the scheme.
The minimum application amount is Rs 5000 and in multiples of Rs 100 thereafter.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 10 crore under the scheme during the NFO period.
Entry and exit load charge will be nil for the scheme.
Benchmark Index for the scheme is CRISIL Liquid Fund Index.
The fund manager of the scheme will be Mr. Gautam Kaul.
Source: http://www.indiainfoline.com/Markets/News/IDBI-MF-Launches-IDBI-Liquid-Fund/3162097092
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