Shinsei Mutual Fund unveils two debt schemes

The new fund offer (NFO) open for subscription from June 30 to July 6, 2009. The fund will re-open on July 14, 2009.

Shinsei Liquid Fund, is an open ended liquid scheme. The investment objective of the scheme is to generate reasonable returns commensurate with low risk, high liquidity, from a portfolio constituted of money market instruments and short term debt instruments with residual maturity of up to 91 days.

The fund will invest 80-100% in money market instruments with maturity of up to 91 days with low to medium risk profile. It will invest up to 20% in debt securities with maturity of up to 91 days with low to medium risk profile.

The fund will not charge any entry or exit load.

Shinsei Liquid Fund offers two plans - Retail and Institutional Plan. Each plan will have growth and dividend options. Dividend option will offer reinvestment facility having frequencies of daily and weekly - every Monday.

Shinsei PSU Bond Fund, is an open ended income scheme. The investment objective of the scheme seeks to generate income from a portfolio constituted of debt and money market securities issued predominantly by public sector undertakings and nationalised banks. The Scheme offers Ultra Short Term Plan. Under this Plan, the Scheme seeks to keep the average residual maturity of the portfolio of the Plan at less than one year.

The fund will invest 80-100% in debt securities including securitised debt issued by public sector undertakings and nationalized banks, and government securities. It will invest up to 20% in debt securities including securitised debt issued by undertakings other than public sector undertakings.

The fund offers two plans under Ultra Short Tern Plan viz. Retail and Institutional Plan. Each plan will have growth and dividend options. Under retail plan dividend sub option (Quarterly - 25th of every calendar quarter end) the scheme will offer pay-out facility and reinvestment facility. Under institutional option dividend sub option has daily dividend reinvestment facility and monthly (25th of every calendar month) dividend option with dividend payout facility and dividend reinvestment facility.

The fund will not charge any entry load. Exit load of 0.50%, if redeemed within 3 months from the date of allotment of units under the retail plan.

The minimum investment amount for both the plans - Retail Plan Rs 10000 and in multiples of Re 1 thereafter and under Institutional Plan will be Rs 1 crore and in multiples of Re 1 thereafter.

The schemes performance will be benchmarked against Crisil Liquid Fund Index. Killol Pandya will be the fund manager for both scheme.

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