Reliance Mutual Fund has launched a new fund named as Reliance Fixed Horizon Fund - XXII - Series 9, a close ended income scheme with the duration of 366 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 25 May and will close on 31 May 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 9 will allocate 40% to 100% of assets in Money Market Instruments with low risk profile. On the other side it would allocate upto 60% of assets in Government Securities issued by Central &/or State Government & other fixed income / debt securities including but not limited to corporate bonds with low to medium risk profile.
95% to 100% of net assets would be invested in AAA/A1+ rated certificate of deposits and upto 5% of net assets would be invested in any other instruments that would include investments in instruments such as CBLO / Reverse Repos (Repos not including repo in corporate bonds) / Government securities / T-Bills and short term deposits.
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.