BNP Paribas Mutual Fund has launched a new fund named as BNP Paribas Income & Gold Fund, an open ended debt scheme. The New Fund Offer (NFO) price for the scheme will be Rs 10 per unit. The new issue will be open for subscription from 17 May and will close on 31 May 2012. The scheme re-opens for continuous sale and purchase within 5 business days of allotment.
The investment objective of the scheme seeks to generate income from a portfolio constituted of debt and money market securities, along with investments in Gold Exchange Traded Funds (ETFs).
The scheme offers growth and dividend option. The dividend option offers dividend payout and dividend reinvestment option.
The scheme would allocate 65% to 90% of assets in debt instruments including corporate debt, securitized debt and other debt instruments with maturity / average maturity / residual maturity / interest rate reset greater than 365 days and money market instruments with low to medium risk profile. On the other side it would allocate 10% to 35% of assets in Gold ETFs with high risk profile.
The minimum application amount is Rs 5,000 and in multiples of Rs 1 thereafter.
The fund seeks to collect a minimum subscription amount of Rs 20 crore under the scheme during the NFO period.
Entry load charge for the scheme will be nil. Exit load charge will be 1%, if redeemed or switched out upto 12 months from the date of allotment of units. 0.50%, if redeemed or switched out after completion of 12 months upto 18 months from the date of allotment of units. Nil, if redeemed or switched - out after 18 months from the date of allotment of units.
Benchmark Index for the scheme is Crisil Short Term Bond Fund Index + Price of Gold (neutral allocation: 75:25).
The fund manager for the scheme will be Puneet Pal.