StanChart Mutual Fund has launched the 5th Series of the Grindlays Fixed Saving Scheme. The fund has launched the first series of the Scheme in March 2001. Since then it has come out with four new series - June '01, Sept '01, Dec '01 and the current one.
These are closed-end income scheme. Each series has one or more plan(s) of maturities ranging from slightly over a year to less than two years. The current series (Series V) has only one plan, which will mature on April 7, 2003. However, investor has a choice of Growth and Dividend options. These schemes invest in fixed income and money market securities.
The scheme's initial public offer is open for subscription from March 11 to March 27, 2002 at a face value of Rs 10 per unit. The initial offer is on a no-load basis and the initial issue expenses will be borne by the AMC. The minimum subscription amount is Rs 10,000 and in multiples of Re 1 thereafter.
One speciality of this type of scheme is that it offers redemption facility to the unit holders on a quarterly basis subject to payment of exit load. Under the current scheme, if a unit holder wants to redeem his units before June 28, 2002, an exit load of 1 per cent will be charged. If redeemed before Sept 30, 2002, exit load will be 0.75 per cent and before December 31, 2002, the exit load will be 0.50 per cent. But, on maturity, i.e on April 7, 2002, redemption will be at the applicable NAV.