Birla Sun Life Mutual fund is launching an open ended scheme christened as Birla Floating Rate Fund. The initial offer period of the scheme is 3-4 June 2003.

Birla Floating rate Fund is an open ended scheme that primarily invests in floating rate debt instruments (65% - 100%). The scheme aims to provide a regular stream of income while minimising risk arising from interest rate fluctuations/ movement. The primary objective of the Scheme is to generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments. The scheme may invest a portion of its net assets in fixed rate debt securities and money market instruments. The scheme will endeavour to minimise interest rate risk.

The scheme offers two plans the Short Term Plan and the Long Term Plan. The Short Term Plan will have an average maturity of upto 3 years. The Long Term Plan will have an average maturity of upto 10 years. The minimum investment amount is Rs 100000.

With assets under management worth Rs. 6278 crores, including two offshore schemes, spread across about 3.5 lakh committed investors Birla Sun Life AMC Limited (BSLAMC) has consistently endeavored to provide investors with superior risk adjusted returns in a family of funds, which include diversified and sector specific equity schemes, balanced and monthly income funds, wide range of debt and treasury products.

Source: Capitalmarket.com