Launch of IDBI Gilt Fund (An open-ended dedicated Gilt Scheme)

IDBI Gilt Fund NFO opens on 5^th December 2012 and closes on 17^th December 2012.

 

IDBI GILT FUND

(An open-ended dedicated Gilt Scheme)

NFO open from 5^th December 2012 – 17^th December 2012

Scheme reopens for ongoing sales/redemption from 24^th December 2012

Approved investment for Exempt Provident Funds/Superannuation Funds/Gratuity Funds

Investment objective – The investment objective of the scheme would be to provide regular income along with opportunities for capital appreciation through investments in a diversified basket of central government dated securities, state government securities and treasury bills.

Asset allocation pattern

Instrument	Indicative Allocation		Risk Profile
	Minimum	Maximum
Government of India dated Securities/ State Government dated Securities/ Government of India Treasury Bills/ Cash Management Bills of Government of India	65%	100%	Sovereign / Low
CBLO and repo/reverse repo in Central Government or a State Government securities	0%	35%	Low

The asset allocation pattern does not have any duration constraints. The asset allocation pattern can, depending on Fund Manager’s outlook on interest rate environment, be dynamically managed to swing between a short duration product and a medium/long duration product, the objective at all times to minimize interest rate risk on the portfolio.

Benchmark - CRISIL Gilt Index

Fixed Tenor Trigger (FTT) Plan will be available with the following tenors - 3 years, 5 years, 7 years & 10 years. FTT Plan will not offer separate NAV.  FTT Plan facilitates automatic redemption at NAV on completion of pre-specified tenor, unless the investor opts for a rollover. Under this plan, rollover facility will be provided to Unitholders of the Scheme. Investors shall be intimated at least 7 business days before completion of investment tenure to facilitate rollover (if any).

Exit load – 0.50% for exit within 30 days from the date of allotment (NFO and ongoing basis)

Dividend option – Quarterly and Annual frequency. Growth Option also available

Minimum investment – Rs. 5000

Dividend Distribution Tax – Same as debt funds – 12.5% for Individual investors; 30% for Institutional investors. Surcharge and cess as applicable