ABN AMRO Mutual Fund has launched a close-ended fund of funds scheme. Named as ABN AMRO Multi Manager Fund, it will be investing in a portfolio of diversified equity and liquid/short term/floating rate schemes of ABN AMRO as well as other mutual funds. The fund will be available for subscription between March 21 and 31, 2006.
Although the maturity date of the fund is three years from the date of allotment, but it is more like an interval fund rather than a close-ended fund as it will provide a liquidity window on the first Monday of every month.
The fund will not charge any entry load, but a CDSC (contingent deferred sales charge) will be charged upon redemption during the liquidity window. This charge will be 4.13 per cent for redemption during the first liquidity window and will gradually reduce to nil at the end of 36th month when the scheme will mature.