HDFC Medium Term Opportunities Fund files offer document with Sebi

HDFC Mutual Fund has filed an offer document with Securities and Exchange Board of India (SEBI) to launch an open ended income scheme- HDFC Medium Term Opportunities Fund. The new fund offer (NFO) price for the scheme is Rs. 10 per unit.

The scheme's investment objective is to generate regular income through investments in debt / money market instruments and government securities with maturities not more than 60 months.

The scheme shall offer growth and dividend option. Further, the dividend option shall offers dividend payout and dividend re-investment as sub-options.

The scheme may invest 60% to 100% of asset in debt and money market instruments (including securitized debt), with low to medium risk profile. Moreover, it would also invest 0% to 40% government securities with low risk profile. Also, the investment in securitized debt shall not normally exceed 75% of the net assets of the scheme.

The scheme's entry load charge is not applicable. However, an exit load charge of 2% is payable if the units are redeemed / switched-out within 25 months from the allotment date of units. No exit load charge is payable if units are redeemed / switched-out after 25 months from the allotment date.

The minimum application amount for first time purchase will be Rs. 5000 and any amount thereafter and Rs. 1000 for additional purchases and any amount thereafter.