IDFC Mutual Fund seeks SEBI nod for ultra short term fund

IDFC Mutual Fund has sought SEBI's consent to launch IDFC Ultra Short Term Fund, according to the draft offer document on the regulator's website.

The open-ended scheme will deploy its entire corpus in debt securities and money market instruments with Macaulay duration between 3 and 6 months.

The Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the price.

Other features:
* Plans: Regular and direct
* Options: Growth and dividend
* Minimum application: Rs 100 and then any amount thereafter
* Performance benchmark: Crisil Liquid Fund Index
* Exit Load: Nil
* Fund manager: Harshal Joshi