Sundaram Mutual Fund has launched an another bond fund christened Sundaram Select Debt Fund. The mutual already has a bond fund called Sundaram Bond Saver, which is the largest fund of the AMC.
The fund is initially open for subscription from August 26 to August 30, 2002. Entry into and exit from the fund is on the no-load basis. The minimum investment is pegged at Rs 5,000. It will again reopen for on-going basis from September 5, 2002 onwards. The fund has following five plans:
The short-term asset plan: It will invest in securities maturing within the next 15 months, to ensure that you have a safe haven in volatile markets
The 3-year asset plan: This plan will invest in securities maturing between 30 months and 42 months, to ensure that your investment benefits moderately, with a higher weight to AAA corporate bonds
The 5-year asset plan: It will invest in securities maturing between 54 months and 66 months, to ensure that your investment appreciates in a declining interest rate scenario.
Long-term asset plan: This plan will invest in securities maturing beyond 9.5 years, primarily government securities, to ensure that you aggressively capture gains in a declining interest rate scenario.
Combined Asset Plan: Under this plan, the fund manager would dynamically adjust the asset mix and maturity of the portfolio according to the fund house's interest rate outlook. Changes in asset mix and maturity could be effected quite frequently, depending on market conditions.
The plus for the investor is that he/she has the freedom to modify his/her investment pattern by freely shifting between the plans or entering or exiting the plans, without worrying about exit and entry loads.