Alliance Term Plans - 98-Day Series |
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- Initial offer opens
: August 1, 2001
- Closing Date : August 1,
2001
- Issue Price : Rs 1,000
- Nature of Scheme : Closed Ended
Debt Fund
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- Sponsor : Alliance
Capital Management Corporation
- Minimum subscription : Rs 50,00,000
- AMC : Alliance Capital Asset
Management (India) Private Limited
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Objective of
the fund: To generate income and capital appreciation by investing in portfolio of
fixed income securities, usually maturing in line with the time profile of the plan.
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- 98-Day Series - A series of closed-end Plans having fixed
maturities of 98 days with a new plan being offered every Wednesday.
- Each new Plan under various series will open for
subscription on a specified day. At the inception of the scheme this specified weekday for
the 98 Day Series will be Wednesday (or the next business day if a particular Wednesday is
a non-business day).
- Redemptions prior to maturity of a Plan will attract exit
load of 5%.
- NAVs will be declared on a weekly basis (currently every
Wednesday).
- All plans under the Scheme will offer investors Dividend
and Growth options.
Investment Strategy |
Alliance Term Plans is a scheme consisting of a series of plans with fixed maturities that
seek to generate income and capital appreciation by investing in a portfolio of fixed
income securities, usually maturing in line with the time profile of the respective plans.
By doing so the investment manager endeavours to closely match the duration of the assets
and the maturity of the term plan. The AMC will invest 100% of the corpus in a diversified
portfolio of debt and money market securities.Some of the Schemes launched by Alliance
- Alliance - 95 Fund
- Alliance Basic Industries Fund
- Alliance Buy India Fund
- Alliance Cash Manager
- Alliance Equity Fund
- Alliance Income Fund
- Alliance New Millennium Fund
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Risk Perception |
As with all debt securities, changes in interest rates may affect the Net Asset Value of
the Plan as the prices of the securities generally increase as interest rates decline and
generally decrease as interest rates rise. The debt funds have witnessed good returns
since the rate cuts from January 2001, hence their mobilizations have also increased.
Prices of long-term securities generally fluctuate more in response to interest rate
changes than do short-term securities. Indian debt markets can be volatile leading to the
possibility of price movements up or down in fixed income securities and thereby to
possible movements in the NAV.
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