HDFC Mutual Fund has launched a new plan named as HDFC Rajiv Gandhi Equity Savings Scheme - Series 2, a close ended equity scheme. The face value of the new issue will be Rs 10 per unit. The new issue will be open for subscription from 30 January to 24 February 2014.
The investment objective of the Scheme is to generate long term capital appreciation from a portfolio of Eligible Securities as specified in Rajiv Gandhi Equity Savings Scheme.
The plan shall offer two options - growth and dividend payout option. The plan would invest 95% to 100% of assets in equity securities specified as eligible securities for RGSS with medium to high risk profile and invest upto 5% in money market instruments & liquid schemes with low to medium 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 S&P BSE 100 Index.
The fund managers of the scheme are Srinivas Rao Ravuri & Prashant Jain.