Edelweiss Mutual Fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch Edelweiss Gilt Fund. It is an open-ended gilt scheme. The face value of the new issue will be Rs 10 per unit. The investment objective of the scheme is to generate income and capital appreciation by investing predominantly in securities issued by the government of India or state governments.
The scheme will have a single plan with dividend and growth option. Dividend option shall have reinvestment, payout and sweep facility. The minimum investment amount is Rs 5000 and in multiples of Re 1 thereafter.
The scheme seeks to collect a minimum corpus of Rs 10 lakh during NFO period.
The scheme will invest 65%-100% in government securities. It will invest upto 35% in the debt and money market instruments. Money market instruments include CPs, CDs, Corporate Debts, T-Bills and government securities with an unexpired maturity upto one year, commercial bills, usance bills, CBLOs, Repo/ Reverse Repo and any other like instruments with a maturity of upto 1 year or less, as specified by the RBI from time to time.
The scheme can also take derivative exposure up to 100% of the net assets of the scheme. The investments in securitised debt papers including Pass through Certificates (PTCs) may be made up to 35% of the net assets of the Scheme. It may invest in foreign securities up to 35% of the Permissible Investments of net assets of the scheme. The scheme may engage in stock lending. Not more than 25% of the net assets of the scheme can generally be deployed in stock lending and not more than 5% of the scheme will be deployed in stock lending to any single counter party.
The scheme will not charge any entry load. However, the scheme will levy 0.50% of exit load for redemptions within 6 months from the date of allotment.
The performance of the scheme is being benchmarked to the performance ISec Composite Gilt Index.
Bhupesh Kalyani will manage the investments under the scheme.
Powered byCapital Market - Live News