Publish Date:
Trust Mutual Fund has launched TRUSTMF Banking & 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.
The fund seeks to generate reasonable returns by primarily investing in debt and money market securities that are issued by Banks, Public Sector Undertakings (PSUs), Public Financial Institutions (PFIs) and Municipal Bonds. However, there can be no assurance that the investment objective of the scheme will be realised.
TRUSTMF Banking & PSU Debt Fund is mandated to invest 80% to 100% of its assets in Debt Securities (including securitised debt) & Money Market Instruments issued by Banks, Public Sector Undertakings (PSUs), Public Financial Institutions (PFIs) and Municipal Bonds.
Upto 20% of the funds portfolio can be held in Government Securities (including State Development Loans, Treasury Bills/Cash Management Bills), Debt Securities (including securitised debt) & Money Market Instruments issued by other entities. It can also invest upto 10% of its assets in Units issued by REITs & InvITs.
The fund management team will endeavor to maintain a consistent performance in the scheme 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.
It is noteworthy that the investments in debt instruments carry various risks like interest rate risk, liquidity risk, default risk, purchasing power risk etc.
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:
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Prevailing interest rate scenario
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Quality of the security/instrument (including the financial health of the issuer)
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Maturity profile of the instrument
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Liquidity of the security
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Growth prospects of the company/industry
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Any other factors in the opinion of the fund management team
TRUSTMF Banking & PSU Debt Fund’s performance will be benchmarked against CRISIL Banking and PSU Debt Index.
It will be managed by Mr Anand Nevatia and Mr Sandeep Bagla.
The NFO opens for subscription on January 15, 2021 and closes on January 27, 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 1,000/- 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 (Dividend Re-investment and Dividend Pay-out facilities).