New fixed investment plan from HDFC MF

Mumbai: HDFC Mutual Fund is launching a new plan called HDFC Fixed Investment Plan - July 2004 (2), a single plan in the HDFC Fixed Investment Plan (HDFC FIP), a close-ended Income Scheme. The issue opens today and closes on July 29, 2004. The offer price during IPO is Rs. 10 per unit. The maturity date / final redemption date for the Plan is August 9, 2005

The primary objective of the scheme is to generate regular income through investment in debt / money market instruments and government securities. The minimum application amount for HDFC FIP- July 2004 (2) is Rs25,000 per application and in multiples of Re1 thereof.

The entire initial issue expenses of the plan will be borne by HDFC Asset Management Company Limited (the AMC). Investors can obtain a copy of the Offer Document and abridged offer document along with application form of HDFC FIP from offices of HDFC AMC / its investor service centres. Though the scheme does not have any entry load, it has an exit load of 0.5 per cent redemption / switches made within three months from the date of allotment and an exit load of 0.25 percent on redemption / switches made after three months from the date of allotment.

Unit holders are required to give redemption / switch-out notice on any business day in writing of at least three clear days (excluding the date of notice and the date of redemption / switch-out). Such notice once given cannot be withdrawn / changed.