SBI Mutual Fund has launched a Floating Rate Plan (FRP) under its Magnum Income Fund. The fund's initial issue is already open from July 5, 2004 and will close on July 14, 2004. The scheme will reopen for ongoing sale and purchase from July 19, 2004 onwards.
Under normal circumstances, the scheme would invest atleast 65 per cent of the total assets in floating rate debt instruments, money market and derivative instruments. And atmost 35 per cent of the assets in fixed rate debt, money market and derivative instruments.
The Floating Rate Plan will have two Sub-plans – Short-term Plan and Long-term Plan. The Long-term plan will have two options – Regular and Institutional Plans. Each option will have Growth and Dividend.
The Dividend option in the Short-term Plan will declare dividends on a monthly basis while the dividend option under the Long-term Plan (Regular and Institutional) will declare dividends on a quarterly basis.
Minimum Investment: Rs. 2000 and in multiples of Rs. 500 while the minimum investment under the Long-term (Institutional) Plan is Rs 50 lakh and in multiples of Rs. 10 lakh.