Sundaram Mutual Fund has launched a new fund named as Sundaram Fixed Term Plan - CW, a close ended income scheme with the duration of 367 days from the date of allotment of units. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 13 June and closes on 20 June 2012.
The objective of the scheme would be to generate income with minimum volatility by investing in debt and money market securities, which mature on or before the maturity of the scheme.
The scheme offers dividend payout and growth option.
The scheme will allocate up-to 100% of assets in money market instruments, short-term and medium-term debt instruments with low to medium risk profile. The scheme shall not make any investment in repo in corporate bond or in securitized debt.
70% to 75% of assets would be invested in AAA rated certificate of deposits and 25% to 30% of assets would be invested in AAA rated commercial papers.
Entry load and exit load charge is not applicable for the scheme. The scheme is proposed to be listed on NSE.
The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter.
The fund seeks to collect a minimum subscription amount of Rs 20 crore under the scheme during the NFO period.
The scheme's performance will be benchmarked against Crisil Short-Term Bond Fund Index.
The scheme will be managed by Dwijendra Srivastava.