GIC Mutual Fund has planned to launch a cash fund: GIC Liquid Fund, tentatively in the first week of January 2002. This will be the first scheme from GIC mutual in 2.75 years. Last being the GIC D'Mat fund, launched in April 1999.
The fund's objective will be to generate optimal returns commensurate with high liquidity from a portfolio of money market and fixed income securities. It will have two options - Growth and Dividend Re-investment (with automatic reinvestment of weekly dividends).
Minimum investment will be of Rs 25,000 and in multiples of Rs 10,000 thereafter for Growth Plan; and Rs 5,00,000 with a minimum subsequent investment of Rs 1,00,000 for Dividend Re-investment Plan. No initial issue expense will be charged to the investor. However, the fund will charge an exit load of 0.25 per cent if redeemed within five business days of allotment.
Account statement and repurchase warrants / cheques will be mailed within 2 business days of the transaction date.