India's Ministry of Power approved the internal guidelines submitted by National Hydroelectric Power Corporation for investment of short-term surplus funds in mutual funds.
According to the guidelines, investments in Public Sector Mutual Funds, encompassing equity investments, should not exceed 30% of the available surplus funds.
To decide on a particular scheme, liquid fund schemes and plans, fixed maturity plans, credit rating, yield, portfolio, corpus of funds, brokerage, expense ratio, entry/exit load and the overall exposure, are to be considered.
Availability of short-term surplus funds shall be assessed for a period ranging up to one year based on cash flow projections. The investment in the mutual funds shall be preferred when the amount available as surplus is for a period of seven days or less.
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