As with most debt funds, the scheme does not levy any load. Entry into and exit from the scheme is at Net Asset Value. The minimum amount required for participating in the scheme is Rs 2000. The fund offers five investment options - four under the dividend plan and one under growth. The growth option is suitable for investors whose financial goal is restricted to capital appreciation.
Investors seeking a regular income can select the dividend plan.
Under this, dividend can be received on a monthly, quarterly, half-yearly or annual basis. Under the annual dividend option the fund had distributed a 9.5 per cent tax free dividend in March 2001. Half-yearly and quarterly dividends of 4.465 and 2.22 per cent respectively have also been declared in the same month. A look at the portfolio reveals that in early 2000 the fund was relying exclusively on corporate bonds to generate returns. Even in March, when interest rate cuts were announced the fund, did not hold gilts.