IDBI Mutual Fund launches Gilt Fund
IDBI Mutual Fund on Tuesday announced the launch of IDBI Gilt Fund, an open ended dedicated gilt scheme.
The New Fund Offer (NFO) will open for subscription on Dec 5 and close on Dec 17.
The units will be available at par (Rs.10) during the NFO and at NAV related prices thereafter. The scheme will re-open for continuous sale and repurchase from Dec 27.
The investment objective of the scheme is to provide regular income along with opportunities for capital appreciation through investments in a diversified basket of central government securities, state government securities, treasury bills and similar other instruments.
The benchmark index for the fund is CRISIL Gilt Index.
Speaking on the occasion, Debasish Mallick, MD and Chief Executive Officer, IDBI Asset Management Ltd, said: "IDBI Gilt Fund will invest in Gilt securities which bear zero-credit risk and offer adequate liquidity.
"The Fund will dynamically manage duration of gilt securities so as to optimize returns, in the backdrop of present uncertainties."