Mumbai: IDFC Mutual Fund has launched the IDFC Capital ProtectionOriented Fund (Series 1), which is a closed-ended mutual fund. The fundseeks to protect capital by investing in high-quality fixed incomeinstruments which mature at the same time as the scheme. It will alsoseek capital appreciation by investing in equity and equity-relatedinstruments. The tenure of the fund is 36 months.

The fund manager will invest between 84 percent and 100 percent of theinvested funds in high-quality debt instruments. This investment willgrow over 36 months of the total initial investment you made in thefund at the time of its inception. The remaining 0-16 percent of amountwill be invested in equities. The minimum investment has been fixed atRs. 5,000. The scheme has growth and dividend options.

Benchmark for the scheme is CRISIL MIP blended index. Ashwin Patni isthe fund manager to the scheme. There is no entry or exit load. Thescheme being a closed-ended scheme, the only exit is through the stockexchange where liquidity is low. As such, there is no guaranteed exitat NAV before the maturity date. The new fund offer closes on March 24,2010.