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Zurich India's gilt fund pegs minimum amount at Rs 1,000 

Pravin Palande  
MUMBAI, JANUARY 31: Zurich India Mutual Fund has added a new gilt fund to their existing family of seven schemes. The fund will invest in gilts and money market securities and has three different plans to suit the requirement of different investors. These are: the savings plan which will address to short term needs of investors for whom liquidity is a prime concern. Zurich India has devised the plan in such a way that it can act as an alternative to a savings account and short term bank deposits.

The investment plan is for investors who have a medium term investment horizon. The third plan which is the provident plan will cater to investors who have a long term perspective on their investments. The minimum amount of subscription is Rs 1,000. There will be no entry or exit load for initial investors. The scheme has opened for subscription on January 31, 2000.

The scheme can be termed unique because all gilt funds in the country are asking for a minimum amount for subscription for Rs 10,000. Apart from this, there are different load structures. Zurich India Mutual Fund is the first fund who is looking for retail investors in their funds. SV Prasad, President, Zurich India says that "We are targeting the middle class investor through this fund. That is the reason the minimum amount for subscription is Rs 1,000".

Zurich India Mutual Fund currently manages assets over Rs 650 crore. The fund took over ITC Threadneedle and this has allowed the fund to increase its investor base to 1,60,000 unit holders. The fund has declared a dividend of 25 per cent on Zurich India Top 200, a equity scheme and a 50 per cent dividend in the zurich India tax saver scheme.

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