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IL&FS Mutual Launches Gilt & Short-term Bond Fund

IL&FS Mutual Fund has planned to launch two funds - Gilt Fund and a Short-term Plan under Bond Fund. Gilt Fund will open for subscription from January 14 to January 21, 2002, whereas, the Short-term Plan under Bond Fund opens on January 10, 2002 and closes on January 15, 2002. There is no entry/exit loads at the time of initial offer in both the funds, i.e. the initial issue expenses of the funds will be borne by the AMC. IL&FS Gilt Fund will again re-open for sale/purchase from January 28, 2002 onwards. The Short-term Plan will reopen for NAV based sales/redemption from January 21, 2002 onwards.

IL&FS Gilt Fund is currently offering a choice of two plans: Short-term Plan (suitable for investors whose investment holding period is expected to be less than 1 year) and Long-term Plan (suitable for investors whose investment holding period is expected to be greater than 1 year). Each plan will offer both Growth and Dividend Option. The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter for both the plans. 75 to 100 per cent of the corpus would be invested in GOI securities and Treasury bills, whereas, 0-25 per cent will be in State Government securities.

IL&FS Bond Fund has introduced an additional plan - Short-term Plan. It offers Growth and Dividend Reinvestment Option. The minimum subscription in the Plan is Rs 5,000 and in multiples of Re. 1 thereafter, for new investors. Additional purchases of units by existing unit-holders of Bond Fund can be made for any amount in multiples of Re 1, subject to a minimum of Rs 1,000. At least 40 per cent of the corpus will be invested in money market instruments and the rest in debt securities. The plan will maintain a separate investment portfolio