Escorts Finance Launches Maiden Fund

Escorts Income Bond, a five-year close-ended fund, has a target corpus of Rs 20 crore to be invested in high quality, investment grade debt instruments.

Announcing the launch of the fund, Jayant Dang, managing director of EFL, said, With the equity market in the doldrums, we have tailored the fund to invest almost its entire corpus in carefully chosen fixed income securities and money market instruments.

He said for the first time the sponsor is offering an assured buyback after one year, up to Rs one lakh per investor, providing an assured 16 per cent return to him.

The other features of the bond include an asset swap provision whereby approved NCDs or PSU bonds can be used to pay for units of the Escorts Income Bond.