"Birla Sun Life Fixed Term Plan - Series EO", floats on; NFO to close on February 28

Birla Sun Life Mutual Fund launched a new close ended income scheme named "Birla Sun Life Fixed Term Plan - Series EO", with maturity time of 457 days.

The New Fund Offer (NFO) price for the scheme was Rs 10 per unit. NFO opened for subscription today and will close on February 28, 2012.

According to the offer document filed with SEBI, the entry load was nil and since the scheme was planned to be listed on the Stock Exchange or any other exchange, the exit load charge will not be applicable. This suggests that the investors wishing to exit may do so through the stock exchange mode.

The minimum application amount was Rs 5,000 and in multiples of Rs.10 thereafter. The two options were available under the Plan of the Scheme viz. Growth and Dividend Payout option.

The performance of the scheme will be standardized against Crisil Short Term Bond Fund index and Kaustubh Gupta will be the Fund Manager of the scheme.

The asset allocation of scheme will be in such a way that the objective of the scheme to generate income will be met, through investments in a portfolio of fixed income securities. Hence, the scheme will allocate 70 to 100 per cent of assets in debt securities, 0 to 30 per cent in money market instruments and 0 to 30 per cent in government securities.