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IDBI MF dynamic bond scheme opens tomorrow

PTI Mumbai | Updated on January 30, 2012

Asset management firm IDBI Mutual Fund’s new fund offer (NFO), IDBI Dynamic Bond Fund, which offers income generation while maintaining liquidity on a minimum investment of Rs 5,000, opens tomorrow.

The scheme will invest in portfolio comprising debt instruments such as Government securities, PSUs and corporate bonds and money market instruments.

“Debt is the flavour of the market. People consider debt to be the best option compared to equities, which is still considered uncertain,” the IDBI Asset Management Managing Director and Chief Executive, Mr Debasish Mallick, said here today.

However, asset allocation in debt and money market instruments is not predetermined and could vary according to market conditions, he added.

The open-ended debt scheme will close on February 14 and has an exit load of 1 per cent if redeemed within a year. The company aims to collect a corpus of at least Rs 107 crore from the issue.

“We want to collect a sizeable corpus and allow it to grow with time,” the Executive Director, Mr B. Sarath Sarma, said.

IDBI Mutual Fund, a part of IDBI Bank, commenced operations in March 2010. Its assets base stood at Rs 6,102 crore at the end of the December quarter.

Published on January 30, 2012

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