Aditya Birla Sun Life Mutual Fund has launched a new close-ended income scheme with a maturity period of 1293 days. The NFO (New Fund Offer) of Aditya Birla Mutual Fund Fixed Term Plan – Series RD will be open for subscription from September 17, 2018, to September 19, 2018.
The investment objective of the Aditya Birla Sun Life MF scheme is to produce income by making investments in a portfolio of fixed income instruments maturing on or before the maturity period of the scheme.
The NFO price for the plan 10 Rupees per unit. The minimum application amount for the new close ended income scheme is 1000 Rupees and in multiples of 10 Rupees thereafter. There is no entry and exit load charge for the scheme.
Aditya Birla Sun Life Mutual Fund scheme offers both Regular and Direct Plans with two options. The two options include Growth and Dividend options. The Dividend option includes two sub-options – Normal Dividend sub-option (Payout Facility) and Quarterly Dividend sub-option (Payout Facility).
Aditya Birla Mutual Fund Fixed Term Plan – Series RD will invest 80 percent to 100 percent of its assets in debt instruments including government instruments except for money market securities with low to medium risk profile. The scheme will further invest up to 20 percent of assets in money market securities with low to medium risk profile.
The close-ended income scheme aims to collect a minimum subscription or minimum target amount of 20 crore Rupees under the scheme during the New Fund Offer period. The FMP scheme is benchmarked against CRISIL Composite Bond Fund Index, according to KJMC.
Mr. Mohit Sharma will be the fund manager of the Aditya Birla Mutual Fund Fixed Term Plan – Series RD (1293 days) scheme. Mr. Sharma joined Aditya Birla Sun Life AMC in October 2015. Before that, from June 2012 to May 2015, he ran his own healthcare-tech business. Prior to that, he has also worked in Standard Chartered Bank, ICICI Bank Ltd., and Irevna Ltd., according to The Economic Times.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]