You are here: Home » Product & Services » Short Term Debt Fund

Escorts Short Term Debt Fund

This product is suitable for investors who are seeking* :

* Generate regular income.

* Invest in floating rate debt securities (including floating rate
   securitised debt, Money Market Instruments and Fixed Rate Debt
   Instruments swapped for floating rate returns).

risk Investors understand that their principal
will be at low risk.

risk
 
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them
 

Investment Objective

To generate regular income through investment in a portfolio comprising substantially of Floating Rate Debt Securities (including floating rate securitised debt, Money Market Instruments and Fixed Rate Debt Instruments swapped for floating rate returns). The scheme shall also invest in Fixed rate debt Securities (including fixed rate securitised debt, Money Market Instruments and Floating Rate Debt Instruments swapped for fixed returns).
 

Basic Scheme Information

Nature of scheme Open ended equity scheme w.e.f. 27.01.2006
Inception Date Dec, 2005
   
Option Plan/Direct Plan Existing Plan : Dividend Option, Growth Option. Dividend Option offers Dividend payout & Dividend Re-investment facility
   
  Direct Plan (w.e.f. 01 Jan 2013): Dividend Option, Growth Option. The Dividend Option Offers Dividend Payout & Dividend Reinvestment facility.
   
Entry Load Nil
Exit Load Nil
   
Minimum Application Amount For new investor : Rs 1000 and any amount thereafter
For existing investors Rs 1000 and any amount thereafter
   
Minimum SIP Investment Rs 1000 and any amount thereafter
   
Lock in Period Nil
   
Redemption Proceeds Within 10 working days of the receipt of the redemption request at the authorised centre of Escorts Mutual Fund
   
Tax Benefit Investors are advised to refer to the details in the Statement of Additional Information and also independently refer to his tax advisor.
   
Recurring expenses First Rs 100 crores : 2.25%
Next Rs 300 crores : 2.00%
Next Rs 300 crores : 1.75%
Balance : 1.50%
   
Benchmark Index CRISIL Liquid Fund Index
   
Dividend Policy The Trustee may decide and declare dividend at such rates, as it deems fit, subject to availability of distributable surplus (based)
   
 

Investment Pattern

The asset allocation under the respective Plans will be as follows:
Types of instruments Normal Allocation (% of Net Assets)
Floating Rate Debt Securities (including floating rate securitised debt, Money Market Instruments and Fixed Rate Debt instruments swapped for floating rate returns) Approx. 65-100
   
Fixed rate debt Securities (including fixed rate securitised debt, Money Market Instruments and Floating Rate Debt Instruments swapped for fixed returns) Approx 0-35
   
 
 
   
Risk profile of the Scheme Mutual Fund investments are subject to market risks. Please read the SID carefully for details on risk factors before investment. Scheme specific risk factors are summarized below:
   
1. The liquidity of the scheme’s debt investments may be restricted by trading volumes and settlement periods.
   
2. The debt securities are subject to risk of an issuers’ inability to meet principal and interest payments on its debt obligations and market perception of the creditworthiness of the issuer.
   
3. Debt securities may also be subject to price volatility due to factors such as changes in interest rates and levels of market liquidity.
   
4. At times, due to non-availability of appropriate debt securities, the Scheme may not be able to invest the available funds in the manner desired by it immediately. Page 2 of 4
   
5. The inability to sell the money market or debt securities held in the Scheme’s portfolio due to the absence of a well developed and liquid secondary market for such securities may result, at times, in losses to the Scheme, in case of a subsequent decline in the value of such securities.
   
6. To the extent the Scheme’s investment are in floating rate debt instruments or fixed debt instruments swapped for floating rate returns, it will be affected by : Interest rate movement (Basis Risk) – Coupon rates on floating rate securities are reset periodically in line with the benchmark index movement. Normally, the interest rate risk inherent in a floating rate instrument is limited compared to a fixed rate instrument. Changes in the prevailing level of interest rates will likely affect the value of the Scheme’s holdings until the next reset date and thus the value of the Schemes Units. The value of securities held by the Scheme generally will vary inversely with changes in prevailing interest rates. The fund could be exposed to interest rate risk (i) to the extent of time gap in resetting of the benchmark rates, and (ii) to the extent the benchmark index fails to capture interest rate changes appropriately; Spread Movement (Spread Risk) - Though the basis (i.e. benchmark) gets readjusted on a regular basis, the spread (i.e. markup) over benchmark remains constant. This can result in some volatility to the holding period return of the floating rate instrument.
   
 
Fund Manager:
Mr. Sanjay Arora (Equity)
 
Chief Investment Officer :
Mr. Sanjay Arora
 
Name of Trustee Company :
Escorts Investment Trust Ltd.
 
 
  Visit Us:

Premises No. 2/90, First Floor, Block - P, Connaught Circus,
New Delhi - 110001.

Tele.:011-43587415/420
Mail To : help@escortsmutual.com

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

 
  Copyrights @ 2013 © Escorts Asset Management . All Right Reserved
  Designed, developed and content provided by