The primary investment objective of the scheme is to seek to generate stable returns by investing in good quality fixed income and money market securities.

The scheme is designed for investors seeking a balance of stable returns and risk over a tenor of 4-12 months.

Interest rates are at an all time low. Term deposit rates for a tenure of 6-12 months are at abysmally low of around 5.5%. Factor in inflation (3.75%) and your real rate of return is not even 2%.

A heavy price indeed for the safety of term deposits.

Instead, consider a highly liquid investment opportunity that can generate more returns in the 6-12 month term with minimal risk to your capital.

Ideal for an investment horizon of 6-12 months, the Medium Term Plan seeks to combine the safety of a short-term fund and the potentially higher returns of a long-term fund. So what you get is nothing but a balanced investment option.

The fund invests 100% of its portfolio in highly rated debt instruments like securities issued by the Central/State government and bonds issued by Blue Chip companies with no exposure whatsoever to equities.

The fund offers the option of Growth or Dividend. While the appreciation continues to compound in the Growth option, under the Dividend option the fund will endeavour to distribute the appreciation in the form of dividends on a bi-monthly basis (once in two months).

What's more, dividends post April 2003 are completely tax-free in the hands of the investor*.

All you need is Rs. 500 (in Plan A - Regular Plan) with no limit whatsoever on the maximum amount you can invest)

To help manage the interest risk, we have put in place a proven and robust investment management process called the 3D Factor Process. This proprietary interest forecasting model tracks 14 factors that impact interest rates. Weightages are assigned to each of the factors, based on their importance at the relevant time. The fund management team then assigns a bullish or bearish rating to each factor, each week. This helps in deciding the composition and duration of the portfolio.

And should you require your investment back. You can have the same at a day's notice and that too directly into your bank account**.