Mutual Fund News : Canara Robeco Mutual Fund has Launched Canara Robeco Banking and PSU Debt Fund

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Canara Robeco Mutual Fund has introduced a new scheme – Canara Robeco Banking and PSU Debt Fund

It is an open-ended debt scheme predominantly investing in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds. A relatively high interest rate risk and moderate credit risk.

Accordingly, the Scheme seeks to generate long term capital appreciation by investing in a dynamic mix of equity and equity related instruments across market capitalizations. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme does not guarantee/indicate any returns.

Under normal circumstances, Canara Robeco Banking and PSU Debt Fund will hold an allocation of 80% to 100% of its assets in Debt and Money Market Instruments issued by Banks, Public Financial Institutions (PFIs), Public Sector Undertakings (PSUs) and Municipal Bonds, 0% to 20% in Debt (including securities issued by Central and State Governments) and Money Market Instruments issued by entities other than Banks, PFIs, PSUs and Municipal Bonds, and 0% to 10% of its assets in Units issued by REITs & InvITs.

As per the Scheme Information Document, the scheme will follow an active interest rate management strategy and aim to generate income and/or capital appreciation through a portfolio of high-quality debt and money market instruments consisting predominantly of securities issued by entities such as Banks, Public Sector Undertakings (PSUs) and Public Financial Institutions (PFIs) and Municipal Bonds. Investments in central and state government may be undertaken for active duration management.

The Fund Manager will actively monitor the prevailing political conditions, economic environment (including interest rates and inflation etc.), performance of the corporate sector and general liquidity as well as other considerations in the economy & markets to assess the likely direction of interest rates and to position the portfolio appropriately to take advantage of the same.

Canara Robeco Banking and PSU Debt Fund’s performance will be benchmarked against CRISIL Banking and PSU Debt Index.

The scheme will be managed by Mr. Avnish Jain.

The NFO opens for subscription on July 29, 2022 and closes on August 12, 2022. The scheme will reopen for continuous sale and repurchase Within five Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re.1 thereafter.

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum Capital Withdrawal option.