Reliance Mutual Fund has launched a new close ended hybrid scheme named "Reliance Dual Advantage Fixed Tenure Fund VIII- Plan B" with maturity period of 1099 days from the date of allotment.
The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The NFO opened for subscription on August 14 and will close on August 28.
According to the offer document filed with SEBI, the entry load is not applicable and since the scheme is planned to be listed on the Stock Exchange or any other exchange, the exit load charge will be also not applicable. This suggests that the investors wishing to exit may do so through the stock exchange mode.
The minimum application amount is Rs 5,000 and in multiples of Rs 1 thereafter. The options available under the plan of the scheme are Growth and Dividend option.
The performance of the scheme will be benchmarked against a mix of 85 per cent Crisil Short Term Bond Fund Index & 15 per cent CNX Nifty Index. Krishan Daga and Anju Chajjer will be the fund managers of the scheme.
The asset allocation of the scheme will be in such a way that the objective of the scheme to generate returns and reduce interest rate volatility will be met by investing in a portfolio of fixed income securities that are maturing on or before the maturity of the Scheme along with capital appreciation through equity exposure. Hence, the scheme will allocate 65 to 95 per cent of asset in Debt Instruments, 0 to 30 per cent of asset in Money Market Instruments and 5 to 20 per cent of asset in Equity and Equity related instruments.