The fund is especially designed for the people who come under low-risk-low-return profile. The fund carry no risk as it aims to invest in a portfolio of AAA rated government debt instruments so as to provide regular income, liquidity and returns to the investors.

Allocation of Funds:
The fund will allocate up to 100% of assets in Government of India dated Securities and Treasury Bills, PSU & Corporate Bonds/Debt Instruments, Money Market instruments. Exposure to securitized debt may be to the extent of 40% of the net assets.

Basic Details:
NFO Opens: September 23, 2011
NFO Closes: September 26, 2011
NFO Price: Rs.10 per unit
Options: Dividend and Growth
Minimum Application Amount: Rs 5,000 per application and additional of Rs 10, thereafter
Exit Load: Nil
Benchmark: CRISIL Liquid Fund Index
Listing: Bombay Stock Exchange

View: At present, Interest rates are quite high in India due to high inflation and short-term debt funds perform quite well during high interest scenario as compared to long-term debt funds.

Returns: After capital market regulator, SEBI, imposed ban in January 2009 on indicating returns, there is no way to predict returns. But you can still find out the approximate returns you can get by investing in this fund by tracking the returns of underlying securities.

The fund would primarily invest in Money Market Instruments or Government Debt securities. And as per the data provided in Mint Money, the current yield on Certificates of Deposits (CD) for one month is around 9.05% and CD yield for three months is around 9.2%.

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