Apr 11, 2008

ING MF launches ING FMF- Series 40

11 Apr 2008 | 15:46

ING MF launches ING FMF- Series 40

Name of Fund: ING Fixed Maturity Plan- Series 40

Scheme: ING Fixed Maturity Fund Series 40 is a close-ended bond scheme offering an investment plan of 366 days maturity.

Objective: The scheme will be investing in a portfolio of government securities, or highly rated corporate bonds maturing close to the maturity of the scheme so generate returns comparable with alternative fixed-income instruments of similar maturity. The scheme will invest in debt securities with maturity coinciding closely with the maturity of the scheme, so as to minimise the impact of price fluctuation of such securities and the value at maturity.

Fund Opens: 10 April 2008

Fund closes: 15 April 2008

Face Value: Rs 10 per unit

Investment Options: The scheme provides two plans i.e. retail and institutional plan with a sub-option of growth, dividend.

Asset allocation: The scheme shall invest up to 100% in debt securities and money market instruments including reverse repo. The debt securities may include securitised debt up to 100% of the net assets. The investments in derivatives instruments shall be to a maximum of 50% of the net assets of the scheme.

The scheme will invest a higher proportion of its corpus in high and medium investment grade securities to ensure high running yield of the portfolio. Investment in money market instruments is for the purpose of meeting liquidity requirements. Nearing the completion of the scheme, the fund may invest 100% of the portfolio in money market instruments so as to protect the interest of the investors.

Entry load: The scheme does not charge an entry load as it is of close-ended nature.

To provide liquidity to investors, the fund proposes to provide repurchase facility in the scheme on 14 July 2008, 12 October 2008, 10 January 2009, and 15 April 2009. The investors can submit their repurchase requests at any official points of acceptance of transactions on any date after the allotment.

If repurchase request is submitted after 16 April 2008 and on or before 14 July 2008 the applicable Contingent Deferred Sales Charge (CDSC) will be 3.00%. CDSC will be reduced to 2.00% if repurchase request is submitted from 14 July 2008 to 12 October 2008. If repurchase request is submitted after 12 October 2008 and on or before 10 January 2009, the applicable CDSC will come down to 1.00%. If repurchase request is submitted after 10 January 2009 and on or before 15 April 2009 the applicable CDSC will be further come down to 0.75%.

If repurchase request is submitted after 15 April 2009 and on 16 April 2009 (maturity) there will be no CDSC.

Minimum Investment Amount: The minimum investment amount under retail plan is Rs 5,000 and in multiples of Re 1 thereafter. Under institutional plan, the minimum investment amount is Rs 1 crore in multiples of Re 1 thereafter.

Benchmark index: CRISIL Liquid Fund Index

Fund Manager: Mr. Prashant Singh