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GIC Mutual Launches Debt & Gilt Fund

GIC Mutual Fund is on a revamp mood. After launching its first debt fund, GIC Liquid in January this year, the mutual is coming out with two new debt funds christened GIC Debt Fund and GIC Gilt Fund. GIC Mutual Fund currently manages 8 funds with a total corpus of 271.87 crore, as on February 28, 2002.

Both Debt and Gilt Fund will initially open for subscription for two days - April 2 and April 3, 2002. It will re-open for sale/repurchase on an on-going basis from April 10, 2002 onwards. Initial issue expenses will be borne by the AMC under both the funds. Right now, entry into and exit from the fund is on a no-load basis.

Debt fund will invest 75 to 100 per cent of its corpus in Debt securities and the balance in money market instruments. Investors have a choice of Growth and Dividend plan. Minimum investment under Growth option is Rs 5,000 and in multiples of Rs 500 thereafter. In Dividend option, it is Rs 10,000 and in multiples of Rs 1,000 thereon.

Under Gilt Fund, 85 to 100 per cent of the corpus will be invested in debt securities and rest in money market instruments. The fund offers Growth and Dividend plans. Minimum investment in the Growth plan is Rs 5,000 and in multiples of Rs 1,000 thereafter. The same in the Dividend option is Rs 10,000 and in multiples of Rs 1,000 thereafter.

Separate portfolios will be maintained for each of the Growth & Dividend plans under the respective schemes.