SBI Mutual Fund has unveiled a new fund named as SBI Debt Fund Series - 18 Months - 11, a close ended debt scheme with the duration of 18 months. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 16 October and close on 19 October 2012.
The investment objective of the scheme is to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market Instruments maturing on or before the maturity of the scheme.
The scheme offers two options viz. growth and dividend option.
The scheme will invest 60% to 100% of assets in debt securities, upto 20% of assets in money market securities and upto 20% of assets in government securities. Exposure to domestic securitized debt may be to the extent of 40% of the net assets.
The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter.
Entry and exit load charge will be nil for the scheme. The units of the scheme will be listed on BSE in order to provide liquidity.
Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index.
The scheme will be managed by Rajeev Radhakrishnan.