Mutual Fund News : Trust Mutual Fund Launches TRUSTMF Short Term Fund

Publish Date:

Trust Mutual Fund has launched TRUSTMF Short Term Fund.

It is an open-ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 to 3 years.

Accordingly, investment objective of the scheme will endeavour to generate stable returns for investors with a short term investment horizon by investing in debt and money market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved.

TRUSTMF Short Term Fund is mandated to invest 0% to 100% of its assets in Debt & Money market instruments. The Macaulay Duration of the portfolio shall be between 1 to 3 years. It can also hold 0% to 10% of its assets in Units issued by REITs & InvITs.

Money market instruments would include certificate of deposits, commercial papers, T-bills, repo, reverse repos and TREP, bill rediscounting, bills of exchange / promissory notes and government securities with unexpired maturity of upto 1 year and such other instruments as eligible from time to time.

Debt securities would include all debt securities issued by entities such as banks, companies, public sector undertakings, body corporates, central government securities, state development loans, UDAY bonds, recapitalization bonds, municipal bonds and G-Sec repos and any other instruments as permitted by regulators from time to time.

As per the Scheme Information Document (SID), the fund management team will endeavour to maintain a consistent performance in TRUSTMF Short Term Fund by maintaining a balance between safety, liquidity and profitability aspects of various investments.

The fund manager will try to achieve an optimal risk return balance for management of the fixed income portfolios. The investments in debt instruments carry various risks like interest rate risk, liquidity risk, default risk, purchasing power risk etc. While they cannot be done away with, they can be minimized by diversification and effective use of hedging techniques.

The fund management team will take an active view of the interest rate movement by keeping a close watch on various parameters of the Indian economy, as well as developments in global markets.

Investment views / decisions will be taken on the basis of the following parameters:

  • Prevailing interest rate scenario

  • Quality of the security / instrument (including the financial health of the issuer)

  • Maturity profile of the instrument

  • Liquidity of the security

  • Growth prospects of the company / industry

  • Any other factors in the opinion of the fund management team

TRUSTMF Short Term Fund’s performance will be benchmarked against its performance to CRISIL Short Term Bond Fund Index.

It will be managed by Mr Anand Nevatia.

The NFO opens for subscription on July 20, 2021 and closes on August 03, 2021. The scheme will reopen for continuous Sale and Repurchase within 5 business days from the date of allotment.

The fund’s NAV is priced at Rs 1000/- per unit during the NFO period. The minimum subscription amount is Rs 1,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (with Payout of Income Distribution cum capital withdrawal option and Reinvestment of Income Distribution cum capital withdrawal option).