Canbank MF plans new debt scheme soon
By Mumbai: | 05 Jul 2002
1
Canbank
Mutual Fund, the mutual fund subsidiary of Canara Bank,
is planning to launch a new debt scheme called Canincome
by July 2002 end. The Securities and Exchange Board of India
has given its permission to launch the new scheme to Asset
Management Company (AMC) recently.
Canincome is an open-ended debt scheme with an objective to generate income through investments in debt and monetary market securities and envisages investment in debt ranging between 80 and 100 per cent. Investments in the money market instruments of the new scheme (including call money) will be up to 20 per cent.
Canbank officials say the scheme offers three plans income, growth and bonus. The scheme thus provides tax-efficiency to any investor to choose a plan according to his need. The minimum investment required for the purchase of the new schemes is Rs 10,000.
They say Canincome will also provide automatic repurchase option under its growth plan, providing for automatic repurchase of a portion of units equivalent to the income distribution under its income plan. "This will help the investor to opt for a short- or a long-term capital gain route instead of getting the income under the income plan taxed after the prevailing tax provisions."
The scheme is slated to hit the market in the latter half of July 2002 and all the initial issue expenses will be borne by AMC. The features of the scheme include income distribution on a quarterly basis (subject to surplus), nomination facility to the sole individual investor, declaration of the net asset value on all business days and a switchover facility to the other schemes of Canbank MF.
Canincome is an open-ended debt scheme with an objective to generate income through investments in debt and monetary market securities and envisages investment in debt ranging between 80 and 100 per cent. Investments in the money market instruments of the new scheme (including call money) will be up to 20 per cent.
Canbank officials say the scheme offers three plans income, growth and bonus. The scheme thus provides tax-efficiency to any investor to choose a plan according to his need. The minimum investment required for the purchase of the new schemes is Rs 10,000.
They say Canincome will also provide automatic repurchase option under its growth plan, providing for automatic repurchase of a portion of units equivalent to the income distribution under its income plan. "This will help the investor to opt for a short- or a long-term capital gain route instead of getting the income under the income plan taxed after the prevailing tax provisions."
The scheme is slated to hit the market in the latter half of July 2002 and all the initial issue expenses will be borne by AMC. The features of the scheme include income distribution on a quarterly basis (subject to surplus), nomination facility to the sole individual investor, declaration of the net asset value on all business days and a switchover facility to the other schemes of Canbank MF.
AMC
currently manages 10 open-ended schemes of various risk-return
profiles and has plans to market the scheme in semi-urban
and rural areas also. Currently Canbank MF has 16 investor-relation
centres spread across India to provide various services
to investors.
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