HSBC Mutual Fund, one of the premier asset management companies in India has launched ‘Fixed Term Series 68’, a close-ended income fund in the Indian market. 

The face value of the fund is Rs 10 per unit and the new fund offer period (NFO) for subscription will be from 6 October to 13 October 2008. 

The benchmark index of the scheme is Crisil Liquid Fund Index, which will mature in 3 months from the date of allotment. 

The investment purpose of the scheme is to seek generation of returns by investing in a portfolio of fixed income instruments normally maturing in line with the time profile of the plan. 

The fund will invest up to 100% in money market instruments including CBOL and reverse repo, short-term debt instruments and securitised debt.
 
However, the investments in securitised debt will not normally surpass 50% of the corpus.

The scheme offers two options under viz. regular and institutional with dividend reinvestment and growth sub-option. 

The minimum investment amount under the retail option is Rs 10,000 and under institutional plan is Rs 1 crore.

The scheme will not charge any entry load for the scheme. The exit load is also zero for the redemptions made on maturity. However the company will charge 0.50% as an exit load, if redeemed before maturity of the scheme. 

The fund house intends to raise minimum targeted amount of Rs 5 crore during the NFO period.