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IDBI lines up a Gilt Fund

IDBI-Principal Mutual Fund plans to launch a Gilt Fund as part of its Future Goal Series. The AMC awaits Sebi's approval for its proposed "IDBI Principal Gilt Fund". The Fund's investment universe will comprise of government securities and strive to earn regular income and medium to long term capital gains for investors.

The AMC also has the option to introduce fixed maturity plans as and when required. The IDBI Gilt fund will offer two investment plans: Savings plan and Investment plan. The former will carry maturity of not more than four years while the latter will have a maturity of maximum ten years. The minimum investment is pegged at Rs 5000 with a no-load clause.

Upon approval, IDBI-PRINCIPAL Gilt Fund will form a part of Future Goals Series consisting of four schemes namely IDBI-PRINCIPAL Growth Fund, IDBI-PRINCIPAL Balanced Fund, IDBI-PRINCIPAL Income Fund and IDBI-PRINCIPAL Cash Management Fund. The AMC kicked off in 1995 with a close ended equity fund, IDBI I-Nit 95 (now converted into an open-end fund). Subsequently, Tax I-Nit 96 (closed-end), IDBI Money Market Fund 97, Deposit I-Nit 97, Child I-Nit 97 (closed-end) and Index I-Nit were also launched. At present the AMC manages assets worth Rs 1384 crore under 22 schemes.