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AMCs rush to file offer documents for interval debt funds

Recently, ICICI has filed offer document with SEBI to launch Interval Fund-Series VI

August 29, 2012 1:14 IST | India Infoline News Service
Asset management companies (AMCs) are rushing to file offer documents with SEBI (Securities and Exchange Board of India) for interval debt funds (IDFs). ICICI Prudential Mutual Fund, HDFC Mutual Fund, DWS Mutual Fund, IDFC, Sundaram, Birla Sun Life and Reliance Mutual Fund have filed offer documents for IDFs in the last three months.

Recently, ICICI has filed offer document with SEBI to launch Interval Fund-Series VI, while HDFC is planning to float Annual Interval Fund-Series 1 (4 Plan). DWS has filed offer document for Interval Fund-Annual Plan-Series 1 to 3, whereas Reliance has filed offer document for Yearly Interval Fund. Thus, investors can expect a rush of NFOs (new fund offers) of IDFs soon in the market.

Interval funds are similar to fixed maturity plans. They offer load-free subscription and redemption facility in the intervals. For instance: If it is a quarterly interval fund, then no subscriptions are permitted between the intervals stipulated by the fund house, but redemptions are allowed after paying the load amount.

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