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BoB wakes up - Launches Three Debt Funds

BoB Mutual Fund finally wakes up. It has come out with a series of debt funds - Income fund, Gilt fund and Liquid fund. The mutual currently manages three tax savers and a diversified equity fund -- BoB Growth. With these funds put together, the AMC has an asset base of only Rs 28.29 crore, as on January 31, 2002. The last offer from BoB Mutual came in 1997 and the AMC has had a virtually nondescript existence, without capitalizing on the strong parent brand.

The initial offer for Income and Gilt funds opens on February 14 and closes on March 5, 2002. Liquid fund is initially open for subscription from February 14 to February 18, 2002. Initial issue expenses under all the three schemes will be borne by the AMC.

BoB Income Fund will invest 80-100 per cent of its assets in debt instruments and the balance in money market instruments. Entry into the fund is on a no-load basis. However, the fund will charge an exit load of 0.5 per cent if redeemed within 6 months.

BoB Gilt is a dedicated government securities fund. There is no entry load but an exit load of 0.5 per cent will be charged if redeemed within 6 months.

BoB Liquid Fund will invest 75-100 per cent of the corpus in money market instruments and upto 25 per cent in the debt instruments. There is no entry or exit load in the fund.

All the three funds offer Growth and Dividend plans. Separate NAVs will be calculated for each plan. Dividend re-investment option is also available. Minimum application amount is Rs 2,000 and in multiples of Rs 1 thereafter.