ING MF Files Offer Document With Sebi - Dec 02, 2008

ING Mutual Fund has filed offer document with Securities and Exchange Board of India (Sebi) to launch ING High Yield Fixed Income Fund Plan A & B, an open-ended Income Fund. The face value of the new issue will be Rs 10 per unit.

The investment objective of the scheme is to generate attractive income by investing into a diversified portfolio of high yielding fixed income securities and money market instruments of varying maturities and at the same time provide continuous liquidity for the investors.

The minimum investment amount will be Rs 5000 and in multiples of Re 1 thereafter. The scheme seeks to collect a minimum corpus of Rs 1 lakh during NFO period.

Asset allocation: For Plan A, under normal circumstances the scheme will invest 50%- 100% in securities debt. It will invest upto 0-50% in other income securities and 0-50% in money market instruments.

For Plan B, under normal circumstances the scheme will invest 25%- 100% in securities debt. It will invest upto 0-75% in other income securities and 0-75% in money market instruments.

For both Plan A and Plan B, the scheme could invest a higher proportion of its corpus in securities having higher credit risk. Investments in derivatives instruments shall be to a maximum of 50% of the net assets of the scheme.

The scheme will not charge any entry load during NFO and will charge an entry load of 2.50% on On-going basis. It will not charge any exit load.

The performance of the scheme is being benchmarked to the performance of Crisil Short Term Bond Fund Index.

Ramanathan K will be the fund manager for the scheme.