The Hindu Business Line : ING Mutual Fund unveils close-ended bond scheme

Mumbai, July 24 ING Mutual Fund has launched a close-ended bond scheme, ING Fixed Maturity Fund Series XXVIII. The new fund offer opens on July 24 and closes on July 27.

The minimum application amount is Rs 5,000. The fund provides dividend option, bonus option & growth option.

ING Fixed Maturity Fund Series XXVIII is a close-ended scheme investing in a portfolio of government securities or highly rated corporate bonds maturing close to the maturity of the scheme — 367 days — so as to generate returns comparable with alternative fixed-income instruments of similar maturity. The scheme will invest in debt securities with maturity coinciding closely with the maturity of the scheme, so as to minimise the impact of price fluctuation of such securities and the value at maturity.

“The scheme endeavours to generate high yields and it will have higher exposure in corporate bonds / papers having higher credit risk. The scheme will invest a higher proportion of its corpus in high and medium investment grade securities to ensure high running yield of the portfolio,” said Mr Ramanathan K, Head-Fixed Income, ING Investment Management (I) Pvt. Ltd.

The scheme has been benchmarked against the CRISIL Liquid Fund Index.