Reliance mutual fund has launched a new scheme named as Reliance Fixed Horizon Fund - XIX - Series 19. The scheme is a close-ended income scheme with duration of 732 days from the allotment date of units.
The scheme, which would open for subscription from April 25, 2011, would offer the units at Rs. 10 per unit during the New Fund Offer (NFO). The subscription will close on May 10, 2011.
The minimum application amount under the scheme would be Rs. 5,000, and in multiples of Re. 1 thereafter. The scheme offers growth and dividend payout option to its investors.
However, there would be no entry and exit load charged under the scheme. The scheme"s performance would be matched against CRISIL Short Term Bond Fund Index.
The units of the scheme shall be listed on National Stock Exchange of India Ltd. (NSE).
Mr. Amit Tripathi would manage the scheme. The requirement of minimum investors under the scheme shall be 20 with no single investor accounting for more than 25% of the corpus of the Scheme/Plan(s). The minimum target amount required to run the scheme would be Rs. 1 crore.
The basic investment objective of the scheme is to generate regular returns and growth of capital. The money pooled would be invested in Central and State Government securities, and other fixed income/ debt securities, thereby making the portfolio a diversified one.
The asset allocation would be in such a way that a maximum of 70 per cent would be in debt securities and maximum 100 per cent and minimum 30 per cent in Government securities. Therefore, the investors would be exposed to low risk in their portfolio.
The scheme has certain investment restrictions. It shall not invest more than 10 per cent of its Net Assets Value (NAV) in unrated debt instruments issued by a single issuer.
Also, the total of such instruments shall not exceed 25 per cent of the NAV of the Scheme. Being a close-ended scheme, the money would be invested only in such securities which mature on or before the date of maturity of the scheme.