Birla Sun Life mutual fund launched a new scheme named as Birla Sun Life Short Term FMP - Series 14. The scheme is a close-ended income scheme, having the time duration of 182 days from the date of allotment of units.
The New Fund Offer (NFO) price for the scheme is Rs. 10 per unit. The new issue will open for subscription on 6th May 2011 and will close on 9th May 2011. Exit and entry load charge will be nil for the scheme and the performance of scheme will be standardized against Crisil Short Term Bond Fund Index.
The scheme offers two options as, dividend and growth option in which growth is the default option for the scheme and dividend option is only having payout facility. The minimum application amount is Rs. 5,000 under the scheme and in multiples of Rs. 10 thereafter.
Mr. Kaustubh Gupta will be the Fund Manager for the scheme. The fund looks for a minimum subscription amount of Rs. 1 crore under the scheme as collection. The fund intends to list the units of the scheme on NSE.
The asset allocation of scheme will be in such a way that the scheme"s objective to generate income will be met but with a minimum exposure to risk, hence 100 per cent of assets will be allocated in debt securities and money market instruments with low to medium risk profile.
Commercial papers, commercial bills, treasury bills, call or notice money, certificate of deposit, usance bills, CBLOs and government securities which are having unexpired maturity of up to 1 year and any other like instruments as specified by the Reserve Bank of India from time to time are included in money market instruments for allocation of fund.
The fund had also launched a similar scheme on March 16, 2011 named as Birla Sun Life Short Term FMP S13. The scheme is showing the positive return of 1.31 per cent during March 21, 2011 to April 28, 2011 and the current NAV of the scheme is Rs. 10.1446 as on 28th April 2011 under dividend option of the scheme.
Another scheme in same category, which commenced on March 14, 2011, named as Birla Sun Life Short Term FMP S12 is posting the positive return of 1.08 per cent for the period between March 18, 2011 to April 28, 2011 and the current NAV of the scheme is Rs. 10.1189 as on 28th April 2011 under dividend option of the scheme.