Motilal Oswal AMC (Asset Management Company) has unveiled Motilal Oswal Most 10-Year Gilt Fund (MOST10. This is an open-ended debt mutual fund scheme that will invest in government securities.
The fund invests 90% to 100% of the money in 10-year benchmark government securities. The fund can invest up to 10% of the money in government securities maturing in 7-12 years. It can be seen as a vehicle for investors trying to benefit from interest rates.
The MOST 10-year Gilt Fund does away with the fund manager risk the possibility of fund manager taking a wrong bet on government securities. Instead, it will invest in the most liquid security among government securities, where there will be little default risk. The NAV (Net Asset Value) movement of the scheme will be matched to the price movement of the benchmark 10-year government security. Bond prices and interest rates share an inverse relationship. When interest rates fall, bond prices move up and when interest rates rise, bond prices fall.
Normally, a fund manager managed gilt fund will keep the average maturity of the fund low when interest rates are rising. The average maturity goes up when the fund manager of an actively managed fund is expecting the rates to fall. If you are expecting interest rates in the economy to move down, MOST 10-year Gilt Fund can be a good vehicle to take advantage of the possible rally in the bond market.
Minimum investment: Rs, 10,000.
Exit load : 0.5% (Sell within 3 three months)
NFO closes: December 5, 2011
About Motilal Oswal Mutual Fund..!
Motilal Oswal Mutual Fund is sponsored by Motilal Oswal Securities Ltd (previously Passionate Investment Management Private Lts). The Sponsor is the Settlor of the Mutual Fund Trust. The Settlor has entrusted a sum of Rs.1,00,000/- to the Trustee as the initial contribution towards the corpus of the Mutual Fund.
Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a sub-broking unit, with just two people running the show. Focus on customer first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology has enabled it to blossom into an almost 2,000 member team.
Contact
Regd Office - Motilal Oswal Commodities Broker Pvt Ltd.
Palm Spring Centre, 2nd flr, Palm Court Complex, New Link Road,
Malad (West), Mumbai - 400 064.
Call : 022-30896680
The fund invests 90% to 100% of the money in 10-year benchmark government securities. The fund can invest up to 10% of the money in government securities maturing in 7-12 years. It can be seen as a vehicle for investors trying to benefit from interest rates.
The MOST 10-year Gilt Fund does away with the fund manager risk the possibility of fund manager taking a wrong bet on government securities. Instead, it will invest in the most liquid security among government securities, where there will be little default risk. The NAV (Net Asset Value) movement of the scheme will be matched to the price movement of the benchmark 10-year government security. Bond prices and interest rates share an inverse relationship. When interest rates fall, bond prices move up and when interest rates rise, bond prices fall.
Normally, a fund manager managed gilt fund will keep the average maturity of the fund low when interest rates are rising. The average maturity goes up when the fund manager of an actively managed fund is expecting the rates to fall. If you are expecting interest rates in the economy to move down, MOST 10-year Gilt Fund can be a good vehicle to take advantage of the possible rally in the bond market.
Minimum investment: Rs, 10,000.
Exit load : 0.5% (Sell within 3 three months)
NFO closes: December 5, 2011
About Motilal Oswal Mutual Fund..!
Motilal Oswal Mutual Fund is sponsored by Motilal Oswal Securities Ltd (previously Passionate Investment Management Private Lts). The Sponsor is the Settlor of the Mutual Fund Trust. The Settlor has entrusted a sum of Rs.1,00,000/- to the Trustee as the initial contribution towards the corpus of the Mutual Fund.
Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a sub-broking unit, with just two people running the show. Focus on customer first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology has enabled it to blossom into an almost 2,000 member team.
Contact
Regd Office - Motilal Oswal Commodities Broker Pvt Ltd.
Palm Spring Centre, 2nd flr, Palm Court Complex, New Link Road,
Malad (West), Mumbai - 400 064.
Call : 022-30896680
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