Sahara MF plans debt scheme with Rs 10 SIP

NEW DELHI: Sahara Mutual Fund on Wednesday filed an offer document with market regulator Sebi for a new fund offering in the debt segment with a minimum investment option of as low as Rs 10.

"Sahara MF has planned to launch a daily fund with a minimum investment option of just Rs 10, and in multiples of one rupee, thereafter. Sahara AMC has just filed a draft offer document of Sahara Daily Fund with the regulator SEBI," the company said in a statement.

The fund is a Systematic Investment Plan (SIP) and would be open ended, investing mainly in debt-related instruments.

"We planned this fund with the objective of channelising the earnings of low-income group. We are focusing on returns higher than bank deposits thereby enhancing the reach of MF investment," Sahara MF CEO Naresh Garg said.

The open ended scheme would provide investors opportunity to buy or sell units on an ongoing basis from not later than 30 days after the close of the New Fund Offer (NFO).

Sahara is already operating in the micro-finance segment. "We are now focusing on financial inclusion to reach out to the daily wage-earners," he said.

"Considering the response in this NFO, we might consider an equity scheme in the same lines as the equity market is gradually recovering," Garg added.

The assets under management of Sahara MF at April end was at Rs 185.82 crore, as per AMFI data.