The Money Value Fund is an open-ended dual option income scheme, which was open for initial subscription from October 26 to November 9.

``The collections in the money value fund is significantly higher than our target. And now, our main concern is to invest this money in safe avenues in order to preserve the capital and then look at returns,'' said the chief executive office of Sun F&C asset management company, Nikhil Khattau.

``In our universe of investment for Money Value Fund for the liquid option, we will be looking at yields equivalent to those provided by money market instruments which is currently at 8 per cent. And for the bond option we arelooking at yields 200-300 bps higher than money market,'' said Khattau.

``We feel that in the short term the interest rates will be in the same range as they are now. While, for the medium and the long term the interest rates are slated to firm up,'' he added.

While the liquid option will be a high liquidity, money market oriented investment option specially designed for deployment of short term surpluses or float funds of corporates, institutions and high networth individuals, the bond option is for fixed income-oriented investors seeking steady income or steady accretion in their investment.

The scheme is not an assured return scheme. The liquid option investing in short term securities will have a yield close to the rate of return prevalent in the call money market while the bond option investing in corporate debentures and partly in money market (for liquidity) will have yields in line with the corporate debt market which is currently at 12 per cent.

The scheme does not have any lock-in period,thus the investors can enter and exit the scheme as and when they choose. The scheme also includes capital gains tax exemptions under section 54 EA/54 EB.