Mumbai:
Chola
MF will launch its Floating Rate Fund, an open ended
income scheme The fund will provide income consistent
with the prudent risk from a portfolio substantially
comprising floating rate debt instruments, money market
instruments and fixed rate debt instruments swapped
for floating rate return. The initial public offer (IPO)
will open for subscription on August 17, 2004, and close
on August 19, 2004. Subsequently, the fund will open
for subscriptions and redemptions on an ongoing basis.
According
to. Sashi Krishnan, CEO, Chola Mutual Fund, "Interest
rate uncertainty in the system has increased. With the
global interest rates and inflation moving up, yields
in the domestic debt market have hardened. In such an
environment, investors in a floating rate fund will
be able to protect themselves from interest rate fluctuations
Chola
Floating Rate Fund will invest at least 65 per cent
of portfolio in debt instruments including securitised
debt and up to 35 per cent in fixed rate debt instruments.
Units
will be offered at Rs 10 during the IPO and the minimum
application amount during the initial offer is Rs25,000
and any amount thereafter. The scheme will have both
dividend and cumulative options.
Chola
Mutual Fund has been promoted by Cholamandalam Investment
& Finance Co Ltd, the financial services arm of
the Rs52 billion Murugappa Group. Cholamandalam has
a strong presence in vehicle financing, mutual funds,
financial products distribution and general insurance.
Cholamandalam AMC Limited, established in 1996, manages
funds in excess of Rs13 billion through nine schemes
with over 100,000 investors. The AMC offers
the entire range of cash, debt and equity products.
Chola AMC is present in over 17 locations and also has
a strong distribution network in place.
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