HDFC Mutual Fund has launched a new plan named as HDFC FMP 370D December 2012 (1), a plan under HDFC Fixed Maturity Plans - Series 23 (a close-ended income scheme). The face value of the new issue will be Rs 10 per unit. The new issue will be open for subscription from 6 December 2012 and will close on 12 December 2012.
The investment objective of the plan is to generate regular income through investments in debt / money market instruments and government securities maturing on or before the maturity date of the plan.
The plan shall offer two options - growth and dividend option. The plan would invest 60% to 100% of assets in debt & money market instruments with low to medium risk profile. The plan may invest upto 40% of net assets in government securities with low risk profile. The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the plan during the NFO period. Entry and exit load charge will be nil for the plan.
Benchmark Index for the plan is CRISIL Short Term Bond Fund Index.