ICICI Prudential launches Constant Maturity Gilt Fund

Tags: News
ICICI Prudential Mutual Fund today said it has launched Constant Maturity Gilt Fund, a 10-year open-ended income fund that aims to provide reasonable returns by investing in portfolio of government securities.

The new fund offer which opened on August 25 will come to a close on September 8.

The fund will be maintaining the average maturity of the scheme close to 10 years. It will be investing in securities with residual maturity ranging between 8 to 12 years.

"In the current scenario, where G-sec yields are at peak and macro environment turning conducive for propelling a fall in interest rates, there is a strong case for investments in duration funds. Indian markets are seeing a positive rally.

"The liquidity situation has improved in the recent past and with this fund, we aim to take advantage of the positive real interest rates that will lead to increase in savings rate," ICICI Prudential Asset Management Company MD and CEO Nimesh Shah said in a statement.

The minimum application amount for the fund is Rs 5,000. The fund will be managed by ICICI Prudential Asset Management Company CIO (fixed income) Rahul Goswami.

There has been significant improvement in current account deficit over the past few quarters and country's balance of payment has swung back into surplus during the October- December 2013 quarter supported by strong flows in debt and equity, the release said.

EDITORIAL OF THE DAY

  • Time for a reality check on AIDS

    Is the fear of Human Immuno-deficiency Virus (HIV) infection leading to Acquired Immuno-deficiency Syndrome (AIDS) in India?

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

<b>Disequilibrium:</b> The Looking glass war

In the looking glass war, where bitter adversaries - Ratan ...

Ananda Majumdar

<b>Ruminations:</b> How JP can wake up Cong

The Congress party has clearly missed a trick with its ...

Sachin Shridhar

The quagmire called kashmir

For the past three decades, the separatist leaders have claimed ...