The scheme does not offer any assured returns and will be the second closed-end income plan from the asset management company after the Guaranteed Income Plan. Interestingly, Kothari Maxima will offer redemption on bi-annual basis with a continuous sale of units during the entire tenure of the scheme. 50 per cent of the units will be redeemed if investments are held for 180 days or more but less than 360 days. On the other hand, 100 per cent of the holding can be redeemed if investments are held for more than 360 days. However, therepurchased units will not be reissued. Kothari Pioneer AMC thus, just stops short of being an interval fund.

The fund has targeted a minimum collection of Rs 5 crore and units will be available on a no-load basis. The fund will offer growth and dividend options.

This is the sixth fund which has been planned by the asset management company in less than 8 months. So far, the the asset management company has launched an infotech fund and a closed-end equity-linked savings scheme. The the asset management company soon plans to launch two sector specific funds, a pharma and fast moving consumer goods fund followed by an open-end ELSS on April 1.

The guaranteed income plan is due for redemption in March, 2002. The fund has annual and monthly options with a corpus of around Rs 10.5 crore. The fund has given a one-year return of over 14.5 per cent.