Sundaram Mutual Fund has launched two new funds named as Sundaram Fixed Term Plan - CH - 24 Months and Sundaram Fixed Term Plan - CL (366 Days), close ended income schemes. The New Fund Offer (NFO) price for the schemes is Rs 10 per unit. Sundaram Fixed Term Plan - CH - 24 Months which is open for subscription from 1 February 2012, will close subscription on 14 February 2012. Sundaram Fixed Term Plan - CL (366 Days) which is open for subscription from 3 February 2012 will close subscription on 15 February 2012.
The objective of the schemes 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 schemes.
The schemes offer dividend payout and growth option.
The schemes 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 schemes shall not invest in securitized debt.
Entry load and exit load charge is not applicable for the schemes. Units of Sundaram Fixed Term Plan - CL (366 Days) will be listed on NSE, while units of Sundaram Fixed Term Plan - CH - 24 Months will be listed on BSE.
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 each scheme during the NFO period.
The scheme's performance will be benchmarked against Crisil Short-Term Bond Fund Index.
The schemes will be managed by Dwijendra Srivastava.