ING Mutual Fund has launched a close-ended bond scheme, ING Fixed Maturity Fund Series XXVIII. The NFO which opened on July 24, closes on July 27, 2007 . The allotment date has been fixed on July 30, 2007. The minimum application amount is of Rs 5,000 and in multiples of Re. 1 thereafter. The investors will have the choice of three options; viz. Dividend Option, Bonus Option & Growth Option.
ING Fixed Maturity Fund Series XXVIII offers an investment plan of 367 days maturity — investing in a portfolio of government securities or highly rated corporate bonds maturing close to the maturity of the scheme so as to 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.
Ramanathan K., Head-Fixed Income, ING Investment Management (I) Pvt. Ltd., said, "The scheme endeavours to generate high yields and it will have higher exposure in corporate bonds / papers having higher credit risk. 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. It offers attractive Net Yield and Absolute Returns even for investors in the highest tax bracket."
Nearing the maturity of the scheme, the Fund may invest 100% of the portfolio in debt and money market instruments so as to protect the interest of the investors. 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 on the value at maturity. Investment in money market instruments is for the purpose of meeting liquidity requirements. Since the scheme endeavours to generate higher yields, it may invest in papers with higher credit risk. It is benchmarked against the CRISIL Liquid Fund Index.
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