Apr 23, 2012, 01.58 PM IST

Union KBC MF launches Ultra Short Term Debt Fund

Union KBC Mutual Fund has launched Union KBC Ultra Short Term Debt Fund, an open ended debt scheme that aims to provide reasonable returns commensurate with low to moderate risk and high level of liquidity through a portfolio of money market and debt securities.

Source: Moneycontrol.com

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Union KBC Mutual Fund has launched a new fund as Union KBC Ultra Short Term Debt Fund, an open ended debt scheme. The investment objective of the scheme is to provide reasonable returns commensurate with low to moderate risk and high level of liquidity through a portfolio of money market and debt securities.

The new fund offer (NFO) will open and close subscription on April 23, 2012. The scheme re-opens on 25 April 2012. The New Fund Offer (NFO) price for the scheme is Rs 1000 per unit.

The scheme offers two growth and dividend option. Dividend option offers reinvestment, payout and sweep facility.

The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter.
Entry load charge will be nil for the scheme. Exit load charge will be 0.25% if units are redeemed / switched out within 3 working days from the date of allotment; nil thereafter.

The scheme would allocate 80% to 100% of assets in money market and debt instruments with residual maturity up to 365 days (including Government securities, floating rate debt instruments, securitized debt, corporate debt. The scheme would allocate upto 20% of assets in debt instruments with residual maturity above 1 and upto 3 years (including government securities, securitised debt, floating rate instruments, corporate debt). Investments in securitized debt including Pass Through Certificates (PTCs) not to exceed 25% of the net assets of the scheme as at the time of purchase.

Benchmark Index for the scheme is CRISIL Short Term Bond Fund Index.

The fund manager for the scheme will be Devesh Thacker.