Deutsche Mutual Fund launched a new scheme named as DWS Fixed Term Fund - Series 82. The scheme is a close-ended debt scheme, having the time duration of 369 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 10th May 2011 and will close on 11th 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, growth & dividend payout option. The minimum application amount is Rs. 5,000 under the scheme and in multiples of Re. 1 thereafter for purchase and switch-ins. Mr. Kumaresh Ramakrishnan 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 meet but with a minimum exposure to risk, hence 100 per cent of assets will be allocated in domestic debt instruments including government securities and money market instruments & securitized debt with low to medium risk profile but the investment in securitized debt is only up to an extent of 70 per cent of the net assets.
The fund can also use derivatives as tools for investment but the exposure to derivatives is limited to 50 per cent of the net assets of the scheme. Therefore, through investment in a portfolio of debt and money market instruments, the fund"s objective is to generate income.
The fund had also launched a similar scheme on January 28, 2011 named as DWS FTF S 81. The scheme is showing the positive return of 2.18 per cent during February 7, 2011 to April 28, 2011 and the current NAV of the scheme is Rs. 10.2324 as on 28th April 2011 under dividend option of the scheme.
Another similar scheme, which commenced on January 24, 2011, named as DWS FTF S 79 is posting the positive return of 2.16 per cent for the period February 2, 2011 to April 28, 2011 and the current NAV of the scheme is Rs. 10.2204 as on 28th April 2011 under dividend option of the scheme.