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Canbank MF Launches Floating Rate Fund

Canbank Mutual Fund has launched a floating rate fund, CanFloating Rate. An open-ended debt scheme, the fund's IPO opened on February 8 and would continue till February 22, 2005.

The fund aims to generate income as well as capital appreciation by mitigating interest rate risk through investment in floating and fixed rate debt securities. It would invest 65 to 100 per cent of its assets in floating rate debt, money market and derivative instruments and up to 35 per cent in fixed rate debt, and derivative instruments.

The minimum investment is Rs 5,000 and in multiples of Re 1 thereafter. The fund would not charge any entry or exit load and has capped the expenses at 0.75 per cent of the daily average net assets.