Deutsche Asset Management Company is the latest to join the mutual fund bandwagon. The AMC will start its innings with four funds - Deutsche Alpha Equity Fund, Deutsche Premier Bond Fund, Deutsche Short Term Maturity Fund and Deutsche Insta Cash Fund. All four funds will have both dividend and growth plans. The initial offer period for these funds is from January 14 to January 21, 2003. While Deutsche Alpha Equity Fund, as the name suggests, will invest up to 100 per cent into equities with the aim of long-term growth, but the other three will invest only in debt and money market instruments. Both Premier Bond Fund and Short Term Fund will invest in corporate bonds and government securities. Finally, Insta cash fund will be looking at highly liquid instruments.
The minimum investment for Deutsche Alpha Equity Fund is Rs 5,000. Deutsche Premier Bond Fund will have a regular plan and an institutional plan, with minimum investment of Rs 5,000 and Rs 1 crore, respectively. Deutsche Short Term Maturity Fund will have a minimum investment of Rs 25,000 and the Deutsche Insta Cash Fund will accept a minimum of Rs 1 lakh.
Amongst these funds, only Deutsche Alpha Equity fund will charge an initial issue expense of 1 per cent to investors, anything over that the AMC will bear that expense. That apart, none of these funds carry any exit load, except for Deutsche Premier Bond Fund for its regular plan. The exit load applicable here is 0.50 per cent for any investment amount less than Rs 10 lakh and redeemed within three months.