First India Asset Management lines up three debt schemes

Mumbai, January 24: | Updated: Jan 25 2002, 05:30am hrs
First India Asset Management (P) Ltd will make a foray into mutual fund industry through First India Mutual Fund with the launch of three debt-linked open-ended schemes, the subscription for which will be opened from February 8, 2002 and close on February 14, 2002. The three schemes are First India Income Fund, First India Liquid Fund and First India Gilt Fund.

The minimum subscription for income fund will be for Rs 3,000, liquid fund for Rs 10,000 and Rs 5,000 for gilt funds. The largest insurance company in the United States, MetLift, and Investec of the UK have a combined stake of 49 per cent in First India Mutual Fund.

In gilt fund, investments will be made in GoI-Secs only; in income funds investments will be made in high quality debt paper and G-Secs while in the liquid fund, investments will be made in quality corporate papers, treasury-bills and short-term papers which matures in 40 to 50 days.

First India Mutual Fund, country head-marketing & sales, Mr Arindam Ghosh said, "Liquid fund will continue to remain no-load offer post-IPO also, but the income and gilt funds might be slapped with an exit load inline with the market practice, which might be anywhere between 0.25 to 0.50 per cent." All the three schemes will have no load offer in the initial offer period.

HDFC Bank will be the bankers and custodian to all the three schemes of First India Mutual Fund.

Said First India Mutual Funds chief executive officer, Mr R Balakrishnan: "In the initial phase, we are launching three debt-linked schemes -- safer products to start with, but down the line we might increase our basket and may also think of having equity related schemes."

The private MF will have 19 investment centres in the initial phase with five offices which includes all the metros plus Bangalore.