Dundee MF to launch gilt fund

February 24: Canada-based Dundee Mutual Fund today said it plans to launch a pure gilt fund, a mutual fund scheme which would invest funds only in state and Central government securities."We would be launching the gilt fund on April one with a minimum subscription amount of Rs 5,000," chairman of Dundee Investment Management and Research (DIMR), Danesh Varma said.

The NAV of the liquidity scheme would be at about Rs 10.17, he added. As the liquidity scheme’s minimum investment was kept at Rs 25,000, many retail investors could not invest in the scheme. "This was one lesson we learnt from our first scheme and we have decided to reduce the minimum investment limit in gilt fund at Rs 5,000," Varma said.

The Dundee chief said investors were becoming more cautious to put their money in the stock market and were looking for secured investments. "Government securities provide the safest possible avenue and this was the main reason for our decision to concentrate on schemes aimed at gilts," Varma said.

Dundeeis also looking at getting the schemes rated by credit rating agencies like ICRA Ltd or CARE.