Publish Date:
Shriram Mutual Fund has introduced a new debt scheme – Shriram Overnight Fund
It is an open-ended debt scheme investing in overnight securities. A relatively low interest rate risk and credit risk.
Accordingly, the investment objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity related instruments of entities engaged in and/or expected to benefit from the growth in housing theme. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The scheme does not assure or guarantee any returns.
Under normal circumstances, Shriram Overnight Fund will hold an allocation of 0% to 100% of its assets in Debt & Money Market Instruments with residual maturity not greater than 1 business day.
As per the Scheme Information Document, the funds will be invested in Debt & Money Market Instruments (with residual maturity not greater than 1 business day,) offering reasonable liquidity and returns, with risk perceived by the Investment Manager. Investments under the Scheme would be made predominantly in TREPS (Tri party Repo Dealing and Settlement), overnight reverse repos and fixed income securities/instruments with overnight maturity. The portfolio will be constructed and managed to generate returns to match the investment objective and to maintain adequate liquidity to accommodate funds movement.
The Scheme aims to identify securities which offer optimal level of yields/returns, considering risk-reward ratio. In addition, the investment team of the AMC will study the macro-economic conditions, including the political, economic environment and factors affecting liquidity and interest rates. The Scheme may undertake repo transactions in corporate debt securities in accordance with the directions issued by RBI and SEBI from time to time.
Shriram Overnight Fund’s performance will be benchmarked against CRISIL Overnight Index
The scheme will be managed by Mr. Kartik Soral and Ms. Gargi Bhattacharyya
The NFO opens for subscription on August 17, 2022 and closes on August 19, 2022. The scheme will reopen for continuous sale and repurchase on September 05, 2022.
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.