Peerless Mutual Fund has launched an openended debt scheme called Peerless Income Plus Fund. The scheme's investment objective is to generate regular income through a portfolio of predominantly high quality fixed income securities and with a marginal exposure to equity and equity-related instruments, the company said. The new fund offer (NFO) will open for subscription from June 9, 2010, and will close on July 8, 2010. The issue price for the scheme is Rs 10 each for cash during the NFO and applicable NAV thereafter on an ongoing basis. No entry and exit load will be charged for Peerless Income Plus Fund, However, an exit load of 1% will be applicable, if redeemed before one year. The minimum investment amount for retail investors is Rs 1,000 during NFO. The scheme shall reopen for all transactions not later than 30 days from the closure of NFO at NAV-based prices on all business days. The scheme comes with two investment options — growth and dividend (pay out and re-investment). The minimum investment amount under SIP option is Rs 500 per month, 1,000 per quarter and Rs 2,000 on a half-yearly basis. Peerless Group has a captive base of 8 million customers predominantly in tier II and tier III towns. The company has tried to capture the essence of their investment behaviour and saving habits, the company added.
Being a part of the Tata group, the fund has the backing of a very trusted brand name with strong retail connect. While the current CEO has done an excellent job in leveraging the Tata brand name to AMC's advantage, it is ironic that this was just not capitalised on at the start. Incorporated in 1995, Tata Mutual Fund remained an 'also-ran' fund house for around eight years. Till March 2003, it had a little over Rs 1,000 crore in assets and 19 AMCs were ahead of it. But soon after that the equation changed. It was the fastest growing fund house in 2004 and 2005. During these two years, it aggressively launched six equity funds, two debt funds and one MIP. The fund house as of now stands at No. 8 in terms of asset size. This fund house has a lot to offer by way of choice. And, it also has a number of well performing schemes. Tata Pure Equity, Tata Equity PE and Tata Infrastructure are all good funds. It also has quite a few good debt funds. The funds of Tata AMC are known to...
