Wednesday, August 6, 2008

HDFC FMP 370 Days August 2008 (1) Set To Launch - Aug 06 , 2008

HDFC mutual fund house has commenced initial offering period of HDFC Fixed Maturity Plan 370 Days August 2008 (1) under HDFC Fixed Maturity Plans-Series IX. The new offer period (NFO) will be opened for subscription on 7 August and closes on 18 August 2008. The face value of new issue is Rs 10 per unit.

HDFC FMP 370 Days August 2008 (1) is a close ended income scheme. The investment objective of the fund is to generate regular income through investments in debt, money market instruments, and government securities. HDFC FMP 370 Days August 2008 (1) offers wholesale plan and retail plan with growth and dividend option. Under retail plan, the minimum application amount will be Rs. 5,000 and in multiples of Re. 1 thereafter. Under wholesale plan, the minimum investment amount is Rs. 1 crore and in multiples of Re. 1 thereafter. The fund seeks to collect Rs 1 crore as targeted amount during NFO period. The scheme will invest 60%-100% in debt and money market instruments, with low to medium risk profile. The schemes will also invest 0%-40% in government securities with low risk profile. Investment in securitised debt will not exceed 75% of the net assets of the respective plans.

Under normal circumstances, the plans shall not have an exposure of more than 75% of its net assets in foreign debt securities subject to regulatory limits. The schemes may enter into repos/reverse repos as may be permitted by the RBI. From time to time the respective Plans may hold cash. A part of the net assets may be invested in the Collaterilsed Borrowing & Lending Obligations (CBLO) or repo or in an alternative investment as may be provided by the RBI to meet the liquidity requirements.

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