Canara Robeco Mutual Fund has filed an offer document with Securities and Exchange Board of India (SEBI) to launch Canara Robeco Gilt Short Term Fund, an open ended gilt scheme. The new fund offer (NFO) price for the scheme will be Rs. 10 per unit.
The investment objective of the scheme is to generate returns commensurate with low credit risk by predominantly investing in the portfolio comprising of short to medium term government securities guaranteed by central and state government with a weighted portfolio duration not exceeding 3 years.
The scheme shall offer growth and dividend option. Dividend option shall offers dividend payout and dividend re-investment as sub-options.
The scheme may invest 100% of assets in sovereign securities issued and guaranteed by state and central government with average portfolio duration of the plan not exceeding 3 years, treasury bills, with low to medium risk profile.
Entry and exit load charge will be nil for the scheme.
Minimum application amount will be Rs. 5000 and in multiples of Re.1 thereafter.
The minimum subscription (target) amount of Rs. 10 crore is expected to be raised during the NFO period.
The Scheme's performance will be benchmarked against I-Sec Si-Bex Index.
The fund manager of the scheme will be Akhil Mittal.
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