Reliance MF Launches Reliance Fixed Horizon Fund – XVIII – Series 9

A new close ended income scheme with the time duration of 90 days has been launched by Reliance Mutual Fund named as Reliance Fixed Horizon Fund – XVIII – Series 9. The price for the new scheme is Rs. 10 per unit. The new issue will open for subscription on 13th April 2011 and will close on the 19th April 2011.

There is no entry and exit charge for the scheme. The scheme will offer dividend option (payout) and growth option. The scheme will be standardrised against CRISIL Short Term Bond Fund Index. Minimum application amount is Rs. 5,000 and in multiples of Rs. 10 thereafter.

The fund looks for minimum subscription of amount of Rs 20 crore under the scheme during the NFO period as collection. Mr. Ritesh Jain will be the manager for the scheme.

The asset allocation of the scheme would be in such a way that less or medium risk exposure to the investment. Hence the 85% asset will be allocated in Money Market instruments, and 15% to 100% of assets in Government Securities issued by Central &/or State Government & other fixed income / debt securities but not limited to corporate bonds with low to medium risk profile. Hence its primary objective is to generate regular returns and growth of capital.

The similar scheme has been launched by the fund on 22nd March 2011 named as Reliance FHFXVIII S7, which is showing a good NAV value. The current NAV value of this scheme is Rs 10.0442, and posting a return of 0.24% on annual trend. Though the return of the scheme is not so much, only in decimals but the less risky nature of the scheme makes it safe and attractive.

The fund manager of the scheme will be Amit Tripathi.

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DSP BlackRock MF Unveils Two Fixed Maturity Plan

Two new close ended income schemes, with a maturity profile of 3 months and 12 months from the allotment date has been launched by DSP BlackRock Mutual Fund named as DSP BlackRock FMP – 3M – Series 32 and DSP BlackRock FMP – 12M – Series 17.

The schemes’ New Fund Offer (NFO) price is Rs 10 per unit. The new issue will be open for subscription from March 17, 2011 and will close on March 21, 2011.

The schemes’ primary investment objective is to seek capital appreciation by investing in a portfolio of debt and money market securities. Moreover, the schemes will invest only in such securities which mature on or before the scheme’s maturity date. The schemes may also use fixed income derivatives for hedging and portfolio balancing. The schemes offer two options- growth option and dividend payout option.

Regarding the allocation, up to 100% of assets would be allocated in debt securities and money market securities with low to medium risk profile. Further, the debt securities may include fixed income derivatives (only for hedging and portfolio re-balancing) upto 50% of the net assets.

Meanwhile, the AMC has fixed Rs 10,000 as the minimum application amount for DSP BlackRock FMP – 3M – Series 32 and in multiples of Rs 1 thereafter. While the minimum application amount for DSP BlackRock FMP – 12M – Series 17 is Rs 5000 and in multiples of Rs 1 thereafter.

However, there were no entry and exit load charge for the schemes. The schemes’ units are proposed to be listed on the National Stock Exchange of India.

DSP BlackRock Investment Managers Pvt. Ltd. is the investment manager to DSP BlackRock Mutual Fund. DSP BlackRock Investment Managers Pvt. Ltd. takes a three dimensional approach to the management of the organization, incorporating functional, product and regional elements in support of clients' goals. The functional dimension looks at the company's operations by specific task, such as portfolio management, account management or operations. The product dimension brings together the cross-disciplinary expertise critical to managing client assets in each class. Finally, the regional aspect of the company's model recognizes the unique, geography-specific needs of clients as well as the importance of local regulatory issues.

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