IDBI-Principal floats open-ended gilt fund

Our Markets Bureau

Mumbai, Aug 26: IDBI-Principal AMC has launched an open-ended gilt fund. The investment objective for IDBI-Principal Gilt fund is to generate risk-free returns through 100 per cent investments in sovereign securities issued by the Central government and/or a state government.

Speaking at the launch, IDBI-Principal AMC managing director Sanjay Sachdev said, “We would like to give our investors the best options to invest in this fund. That is the reason why we have launched
our Gilt Fund with dividend and growth options.”

The fund has two plans : saving plan and investment plan. Under the saving plan, the investment would be made in government securities (g-secs) having average residual maturity upto four years. While
under the investment plan, the investments would be in government securities (g-sec) having an average residual maturity up to 10 years.

The minimum investment for each option under both plans is Rs 5,000.

The gilt fund would not have any entry or exit loads and the initial issue expenses would not be charged as well.

The NAV of the scheme for the same business day would be available between 10.30 and 3.30 pm.

After 3.30 pm, the next business day’s NAV would be made available.