HDFC Mutual Fund has launched a Short-term Plan. The plan is initially open for subscription from February 18 to February 25, 2002. HDFC is the second largest private sector mutual fund in India with Rs 4461.60 crore of assets under management. It currently manages 7 open-end funds (2 equity & 5 debt funds) and 2 close-end funds. The Mutual's last offer was a Fixed Investment Plan, which came in August 2001.
The Short-term Plan will invest around 60 per cent of its corpus in debt securities and the balance in money market instruments. It will maintain an average maturity in the range of 9 to 18 months. The fund offers Growth and Dividend re-investment options. Minimum application amount is Rs. 3,000 and in multiples of Rs.1,000 thereof under each plan. Entry into the fund is on a no-load basis. However, the fund will charge an exit load of 0.25 per cent if redeemed within 15 days.
The plan will be suitable for investors having short to medium term investment horizon of 15 to 90 days.