
Kotak Mahindra Mutual fund has extended its family of debt funds with the launch of a 370-day FMP (Fixed Maturity Plan). The plan will open for subscription from May 29 to May 31, 2002.
The plan offers three options - Growth, Dividend Payout and Dividend Reinvestment. Entry into the plan is on a no-load basis but an exit load of 1 per cent would be charged if redeemed before maturity. Minimum initial investment is Rs. 1 lakh and in multiples of Re. 1, thereafter.
FMPs are close-ended funds and matures on a specific date. Investors typically come in at the launch of the FMP and stays till maturity. A FMP invests in debt and money market instruments. The average maturity of the FMP portfolio generally does not exceeds the maturity of the plan.