L&T Mutual Fund has launched a new fund named as L&T FMP - VI (May369D A), a close ended income scheme having a tenor of 369 days. It would mature on 13 May 2013. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 4 May and closes on 9 May 2012.

The investment objective of the scheme would be to achieve growth of capital through investments made in a basket of debt / fixed income securities maturing on or before the maturity of the scheme.

The scheme offers two options viz. growth and dividend (payout) option.

The scheme would allocate up to 100% of assets in debt and money market instruments with low to medium risk profile. Debt instruments may include exposure in derivatives, either exchange traded or OTC which can be upto 50% of net assets as permitted by SEBI regulations.

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 scheme during the NFO period.

Entry and exit load charge will be nil for the scheme. The units of the scheme will be listed on NSE on allotment.

Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index.

The scheme will be managed by Ms. Richa Sharma and Mr. Hareshwar Karekar.