BOB Mutual Fund is planning to launch three new schemes. The IPO period for all three schemes will be from August 26 to September 09. The other details are as given below:
BOB MIP Fund, as the name suggests, is a monthly-income plan aiming to provide regular returns as well as long-term capital appreciation by investing a maximum of 20 per cent in equity or equity-linked instruments and the rest in debt securities. The minimum subscription would have to be Rs 5000 and in multiples of Rs 1000 thereafter. The entry load for investors would be nil but an exit load of 0.50 per cent would be levied in case investments less than Rs 25 lacs are redeemed within a year.
The NRI Fund would be available in three plans – The Short Term Bond Plan, The Long Term Bond Plan and the Flexi-Asset Plan. The minimum subscription amount under all three plans would be Rs 50,000 and thereafter in multiples of Rs 5,000. The asset allocation and load structure details under each plan would be as detailed below-
The Short Term Bond Plan would invest 65-100 per cent in cash, call and money market instruments and the remaining in debentures, bonds and G-secs of longer maturity. There would be no entry or exit loads levied on investments in the plan.
The Long Term Bond Plan would invest 65-100 per cent of its portfolio in longer maturity debt instruments and the remainder in short maturity investments like cash, call and money market instruments. There would be no entry load on investments but an exit load of 0.50 per cent would be levied if the redemption request is within 6 months from the date of purchase of the units.
The Flexi-Asset Plan would be in the form of a dynamic fund, which depending on the asset environment would shuffle its investments between long-term debentures, securitised debt, money market instruments, cash and call money as well as equity and equity-linked instruments (with a cap of 80 per cent). An entry load of 1 per cent would be levied on investments in the fund but no exit load charged on redemptions.
The CHILDREN Fund has also been launched under two plans – a Gift Plan and a Study Plan. The Gift Plan would invest 25-49 per cent into equity and the remainder in debt and money market securities. Under the Study Plan, equity investments would form only 0-20 per cent of the portfolio and the remainder would be into debt instruments. Minimum subscription here is Rs 5000 and thereafter in multiples of Rs 1000. There would be no entry load on investments but an exit load of 1 per cent would be levied if redemptions are made within 3 years.