Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund - XXII - Series 26, a close ended income scheme with the duration of 743 days from the date of allotment. During the New Fund Offer (NFO) the scheme will offer units at Rs 10 per unit. The new issue will be open for subscription from 4 September and will close on 10 September 2012.
The primary investment objective of the scheme is to generate returns and growth of capital by investing in a diversified portfolio of Central, State Government securities and other fixed income/ debt securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility.
The scheme offers two options viz. growth and dividend payout option.
Reliance Fixed Horizon Fund - XXII - Series 26 will allocate upto 40% of assets in Money Market Instruments with low risk profile. On the other side it would allocate 60% to 100% of assets in Government Securities & debt instruments with low to medium risk profile.
40% to 45% of net assets would be invested in AAA/A1+ rated non convertible debentures / bonds and 55% to 60% of net assets would be invested in AA rated non convertible debentures / bonds.
The minimum application amount is Rs 5000 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 and exit load charge will be nil for the scheme.
Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index.
The fund manager of the scheme will be Amit Tripathi.