Edelweiss Fixed Maturity Plan – Series 42 is a close-ended income scheme. The tenure of the scheme is 36 months. The risk associated with the fund is moderate, which means it’s neither too high nor too low. The investments will mostly be made in the debt and money market instruments. This scheme will help the investor to earn income over the medium to long-term horizon.

Here are a few things one must know before making an investment in this scheme.

New Fund Offer time period

The NFO opened on April 12, 2017, and closes on April 17, 2017.

Investment Objective

The investment objective of the scheme is to generate income through investment in debt/money market instruments and government securities maturing on or before the maturity date of the scheme. However, there is no assurance that the investment objective of the scheme will be realized and the scheme does not assure or guarantee any returns.

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Asset Allocation

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The scheme will invest only in such securities which mature on or before the maturity date of the scheme. The scheme will not invest in credit default swaps, securitized debt and foreign securities. Exposure in derivatives will be limited up to 50% of the corpus of the scheme. Total gross exposure in debt, money market securities and derivatives shall not exceed 100% of the net assets of the scheme.

Liquidity of the Scheme

The units of the scheme cannot be redeemed by the unit holders directly with the fund until the maturity date and there will be redemption by the fund on the maturity of the scheme. Investors holding units in demat mode, who wish to redeem/exit the
scheme before the maturity date or the final redemption date, may do so through the stock exchanges where the scheme is listed.

Load Structure

Entry load is nil and exit load is also nil. However, the AMC or the Trustee Company reserves the right to revise the load structure from time to time. Such changes will become effective prospectively from the date such changes are incorporated.

Minimum Application Charges

Minimum of Rs. 5000 and in multiples of Re. 10 thereafter per application, which includes switchings from other schemes of the Edelweiss Mutual Fund.

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Scheme’s Benchmark

The benchmark of the scheme is CRISIL Composite Bond Fund Index

It is, however, to be noted that one should consult one’s financial adviser before investing in such a fund. Moreover, one must link one’s investments to one’s financial goals of life.

(Source: amfiindia)