Deutsche Mutual Fund has unveiled a new fund named as DWS Hybrid Fixed Term Fund - Series 8, 36 months close ended debt fund. The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue will be open for subscription from 16 August and closes on 30 August 2012.
The objective of the fund is to generate income by investing in fixed income securities maturing on or before the date of the maturity of the scheme and to generate capital appreciation by investing in equity and equity related instruments.
Growth and dividend (regular, quarterly and annual payout) option are offered under the scheme.
The scheme would invest 75% to 100% of assets in domestic debt instruments including government securities with low to medium risk profile. Upto 25% of assets in money market instrument, cash & cash equivalents (CBLO, Reverse Repo, T-Bills) with low risk profile. 5% to 20% of assets in equity and equity related securities with high risk profile.
Of the investments in debt instruments, 55% to 60% would be invested in AAA/A1+ rated non convertible debentures / bonds including structured obligations and 20% to 25% in AA rated non convertible debentures / bonds including structured obligations.
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 and exit load charge for the scheme will be nil.
Benchmark index for the scheme is Crisil MIP Blended Fund Index.
The equity portion of the scheme will be managed by Aniket Inamdar and debt portion will be managed by Kumaresh Ramkrishnan.