Sundaram Mutual Fund launched a new scheme named as Sundaram Fixed Term Plan - BB. 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 and the minimum application amount is Rs. 5,000 under the scheme. Mr. Dwijendra Srivastava will be the Fund Manager for the scheme. 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 money market instruments, short-term, medium-term debt instruments and securitized debt with low to medium risk profile.
The fund had also launched a similar scheme on March 24, 2011 named as Sundaram FTP BA. The scheme is showing the positive return of 0.34 per cent during April 6, 2011 to April 28, 2011 and the current NAV of the scheme is Rs. 10.0874 as on 28th April 2011 under dividend option of the scheme.
Another similar scheme, which commenced on same date, named as Sundaram FTP AZ is posting the positive return of 0.38 per cent for same period and the current NAV of the scheme is Rs. 10.1006 as on 28th April 2011 under dividend option of the scheme.