HDFC Mutual Fund house has begins initial offering period of HDFC Fixed Maturity Plan 370 Days October 2008 (1), a close ended income scheme under HDFC Fixed Maturity Plans-Series IX.  

The face value of new issue is Rs 10 per unit and the NFO will be open for subscription on 16 October and close for subscription on 20 October 2008.

The investment purpose of the fund is to generate regular income through investments in debt, money market instruments and government securities. The scheme will invest 60%-100% in debt and money market instruments, with low to medium risk profile.

The Benchmark Index for the Scheme would be Crisil Short-Term Bond Fund Index, and it offers wholesale plan and retail plan with growth and dividend option.

Under retail plan, the minimum application amount will be Rs. 5,000 and in multiples of Re. 1 thereafter. However under the wholesale plan, the minimum investment amount is Rs. 1 crore and in multiples of Re. 1 thereafter.

The newly launched scheme will not levy entry load charged due to its close-ended structure. But it may charge 1.50% an exit load if the units are redeemed or switched out before maturity.

HDFC Mutual Fund has been one of the best performing funds in recent years. The sponsors of the fund are housing finance major HDFC AMC and British investment company Standard Life Investments.

As of March 2008, the total assets under management stood at Rs 62,747 crores, as compared to Rs. 36,421 crores in the previous year.