Sundaram Mutual Fund has filed offer document with SEBI to launch a close-ended income scheme as “Sundaram Fixed Term Plan-IA-IB”. The New Fund Offer price is Rs 10 per unit. Entry load and Exit Load will be Nil for the scheme. The scheme offers Growth, Dividend Payout & Dividend Sweep facility and seeks to collect a Minimum Target Amount of Rs 20 Crores.
The scheme will be benchmarked against CRISIL Short Term Bond Fund Index for schemes with tenure of 92 days and up to 1100 days, and CRISIL Composite Bond Fund Index for schemes with tenure above 1100 days and up to 1830 days. The minimum application amount is Rs 5,000 and in multiples of Re 10 thereafter.
The investment objective of the scheme would be to generate income by investing in debt and money market securities, which mature on or before the maturity of the scheme.