Mf Newsline

IDBI Principal Asset Management Company is coming out with an open-ended gilt fund - IDBI PRINCIPAL Gilt Fund on August 23, 2001. A no-load fund, it will not charge the initial issue expenses as well. The minimum initial investment in the fund will be Rs 5000 and the minimum repurchase amount will be Rs 500.

The fund offers two plans - Investment (Long-term) and Saving (Short-term). Under the savings plan the fund will invest in government securities with average maturity upto four years.

While under the Investment Plan the investments would be made in government securities with an average maturity upto 10 years. There will be a dividend and growth option available under both the plans.

The fund offers all transfer facilitations -- dividend reinvestment, dividend sweep, systematic investment plan and systematic withdrawal plan, systematic transfer plan and switch over.

HDFC Mutual Fund is launching the second series in its closed-end Fixed Investment Plan on August 20, 2001. The initial offer closes on August 27, 2001.

There are two plans available - HDFC FIP August 2001 (1) and HDFC FIP August 2001 (2). Plan 1 matures on November 26, 2001 and Plan 2 matures on February 26, 2002.

There is a minimum investment of Rs 1 crore and in multiples of Rs 10,00000 thereafter. It is a no-load fund but an exit load of 1% will be charged if the redemptions are made before the maturity date.

Pioneer ITI Mutual Fund is also launching its first series of fixed maturity plans under Pioneer ITI Strategic Investment Plan (SIP). This plan will be fully invested in high rated fixed income instruments, which have a duration in line with the maturity of the scheme.

The initial issue opens on August 23, 2001 and closes on the same day. The scheme will mature on November 23, 2001. The minimum investment in the fund is Rs 5000.

The entry load is nil whereas there is an exit load of upto 4% for redemptions before maturity date. The SIP is an open-end scheme designed to provide capital stability and current income. The scheme offers a choice of various plans, each with their own asset allocation.

Each of these plans offer four sub-plans of varying maturity periods. The scheme will launch 12 series every year and each of them will have one or more sub-plans plans of varying asset allocations and maturities.

Kotak Mahindra Mutual Fund has announced changes in the K Bond Wholesale Plan with effect from August 16, 2001. The exit load of 0.25% of the applicable NAV on redemption of units within 3 months prior to the date of redemption has been removed. Minimum purchase amount has been reduced to Rs 1 lakh from Rs. 25 lakhs.

Minimum amount/units which can be redeemed has been reduced from Rs. 5,00,000 or 50,000 units to Rs. 1,000 or 100 units. Minimum balance to be maintained has been reduced from Rs. 25,00,000 to Rs. 1,00,000.