Peerless Mutual Fund has announced the launch of Peerless Flexible Income Fund, an open ended debt scheme. This is a dynamic bond fund having flexibility to change both duration and the asset allocation mix of the portfolio with the changing interest rate scenario and economic environment.

Commenting on the launch of the NFO, Mr. Akshay Gupta, MD and CEO, Peerless Funds Management Co Ltd said, “We all know that price and interest rates have inverse relationship. Therefore, every change in interest rate provides capital appreciation opportunity. However, it would be difficult for retail investors to time the market and benefit from the same. Therefore, we have launched Peerless Flexible Fund which has more flexibility to realign the portfolio's average maturity and asset allocation in the changing interest rate scenario.”

The New Fund Offer (NFO) will open for subscription on 16 August 2012 and will close on 17 August 2012. The units will be available at par (Rs.10/-) during the NFO and at NAV related prices thereafter. The scheme will re-open for continuous sale and repurchase from 21 August 2012.

The primary investment objective of the scheme will endeavour to generate reasonable returns through active duration management of the portfolio, while maintaining liquidity by investing in debt instruments including bonds, debentures and Government securities and money market instruments over various maturity periods.

The scheme shall offer two options - growth and dividend (pay out and re-investment) option.

The scheme would invest upto 100% of assets in debt instruments with low to medium risk profile. On the flipside it would invest upto 100% of net assets in money market instruments with low to medium risk profile.

The minimum application amount is Rs 1000 and in multiples of Rs 1 thereafter.

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period.

Entry load charge will be nil for the scheme. Exit load charge will be 0.5% if redeemed/switched out within 15 days from date of allotment.

Benchmark Index for the scheme is CRISIL Composite Bond Fund Index.

The fund manager of the scheme will be Ganti N Murthy.