NFO: Here’s all you need to know about Reliance Fixed Horizon Fund – XXXIV – Series 2

Reliance Fixed Horizon Fund – XXXIV – Series 2 is a close-ended income scheme which is suitable for investors who are looking for returns and growth over the medium term tenure of the fund. The scheme will limit the interest rate of volatility by doing investments in debt, money market and G-sec instruments maturing on or before the date of the maturity of the scheme.

Here are a few things to know before making any investment in this scheme.

New Fund Offer time period

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The NFO opened on May 16, 2017, and closes on May 18, 2017

Investment Objective

The primary investment objective of the scheme is to seek to generate returns and growth of capital by investing in a diversified portfolio of the following securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility –
• Central and State Government securities and
• Other fixed income/ debt securities

However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

Asset Allocation

The scheme will invest in securitised debt which may be up to 25% of the net assets of the scheme. The Scheme will not invest in foreign securities, securities lending or engage in short selling. Further, the scheme may invest in “Repos” as well.

Liquidity of the Scheme

Reliance Fixed Horizon Fund – XXXIV – Series 2, being a close – ended scheme; the units can be purchased only during the New Fund Offer (NFO) period of the scheme. No redemption/repurchase of units shall be allowed prior to the maturity of the close-ended schemes. Units held in dematerialized form can only be traded on the stock exchange, where the units are listed.

Load Structure

The entry load and exit load is not applicable under this scheme.

Minimum Application Charges

The MAC of the scheme will be Rs 5000, which can be increased in multiples of Re 1 thereafter.

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 website)