|HSBC Mutual Fund has launched a new fund named as HSBC Ultra Short Duration Fund, an open ended ultra-short term debt scheme investing in instruments such that the Macaulay Duration of the portfolio is between 3 months to 6 months. The New Fund Offer (NFO) price for the scheme is Rs 1000 per unit. The new issue will be open for subscription from 14 January to 28 January 2020.
The investment objective of the scheme is to provide liquidity and generate reasonable returns with low volatility through investment in a portfolio comprising of debt & money market instruments.
The scheme offers Regular Plan and Direct Plan shall be available under the Scheme. The Regular and Direct Plan will have two options viz. Growth and Dividend (Payout and Reinvestment facility), Sub Options under dividend option: Daily Dividend (Reinvestment), Weekly Dividend (Reinvestment) & Monthly Dividend (Payout and Reinvestment).
The scheme would allocate up to 100% of assets in Debt, Money Market instruments such that Macaulay duration of the portfolio is between 3 months to 6 months with low to medium risk profile.
The minimum application amount is Rs 5000 and in multiples of Re. 1/- thereafter.
The minimum additional amount is Rs 1000 and in multiples of Re. 1/- thereafter.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period.
Entry load: Nil
The performance of the Scheme / Plan(s) will be benchmarked with CRISIL Ultra Short Term Debt Index.
The fund manager of the scheme is Kapil Punjabi.
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