Saturday, November 1, 2008

HDFC MF Launches 370 Days Plan - Nov 1, 2008

HDFC Mutual Fund house has commenced initial offering period of HDFC Fixed Maturity Plan 370 Days November 2008 (1) under HDFC Fixed Maturity Plans-Series IX. The new offer period (NFO) will be open for subscription on 3 November and close for subscription on 6 November 2008. The face value of new issue is Rs 10 per unit.

It 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. The scheme 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 scheme will invest 60%-100% in debt and money market instruments, with low to medium risk profile. The scheme will also invest upto 40% in government securities with low risk profile. Investment in securitised debt will not exceed 75% of the net assets of the respective plans. HDFC 370 Days plan will not levy entry load charged due to its close-ended structure. It may charge 1.50% an exit load if the units are redeemed or switched out before maturity.

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