by NR Indran / INT

Mumbai – DWS Investments, the retail mutual fund arm of the Deutsche Bank Group; announced the launch of the DWS Fixed Term Fund Series 85 – A 371 days close ended  Debt Fund. The NFO for this fund opens for subscription on 15thJune 2011 and closes on 22ndJune 2011.

The objective of this close ended debt fund is to generate income by investing in debt and money market instruments maturing on or before the date of maturity of the scheme. The fund has CRISIL Short Term Bond Index as the Benchmark Index for performance. DWS Fixed Term Fund Series  85 would be listed on the National Stock Exchange (NSE). The investments would be locked in for the scheme’s tenure; however, the units held in dematerialized form can be traded on the stock exchange(s).

The unit offer price for fund is Rs. 10/- per unit during NFO period. No entry and exit load will be applicable for DWS Fixed Term Fund Series 85. An investor can start investing with a minimum of Rs. 5,000/- and in multiples of Rs. 1/- thereafter. Under the Scheme, three investment options are available for investors – Growth and Dividend Payout and Dividend Sweep. The asset allocation pattern for the DWS Fixed Term Fund Series  85 is 100% investment in Domestic Debt Instruments including Government Securities, Money Market Instruments and Securitized Debt.Speaking on the launch, Kumaresh Ramakrishnan, Head of Fixed Income, Deutsche Asset Management said, “Short-term liquidity situation in the new fiscal year has shown improvement following government spending towards end March 2011 and lower CD issuances by banks. This has resulted in a fall in the near term rates.

However interest rates in the one year segment continue to remain at elevated levels as clarity is yet to emerge on inflation trends given the uncertain macroeconomic factors and prospects of further rise in fuel prices. Given this backdrop, the proposed 371 day FMP offers an opportunity to investors to benefit from elevated money market levels in the upto 12 month segment by investing in a high quality debt portfolio”

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