The NFO opens for subscription on August 14 and closes on August 28.
Religare Invesco Mutual Fund today announced the launch of its open ended income scheme called Religare Invesco Corporate Bond Opportunities Fund. The fund opens for subscription on August 14 and closes on August 28.
Commenting on the launch, Saurabh Nanavati, Managing Director & Chief Executive Officer, Religare Invesco MF said, “The current high yields offered by corporate bonds present an attractive investment opportunity. In an improving economic environment, we expect credit upgrades outnumbering credit downgrades going forward, which was not the case 2-3 years back.”
“Individual security selection becomes the key in managing a corporate bond fund, which offers a high yield and has the potential of a credit upgrade due to improving fundamentals. At Religare Invesco, our investment team, supported by a strong team of credit analysts, have gained solid expertise in managing a credit strategy over the past few years. Our proprietary credit appraisal process helps us drive the final selection of bonds,” added Saurabh.
The fund seeks to generate returns and capital appreciation by predominantly investing in corporate debt securities of varying maturities across the credit spectrum. The fund is a credit focused bond product seeking a high level of accrual income. At least 80% of net assets of the fund will be invested in private and public sector corporate bonds (excluding bank instruments) with an aim to take advantage of high-yielding corporate bonds. Investments will predominantly be made in corporate bonds across varying maturities with ratings comprising between ‘AAA’ and A- (by a credit-rating agency), stated a press release issued by the fund house.
Religare Invesco manages assets under management of Rs. 17,092 crore as on June 2014.
Options: Growth, dividend payout and dividend reinvestment
Minimum application: Rs. 5,000
Exit load: 2% if redeemed or switched out on or before 18 months from the date of allotment
Benchmark: CRISIL
AAA Long-Term Bond Index (32.5%), CRISIL AAA Short-term Bond Index (32.5%),
CRISIL AA Long Term Bond Index (17.5%) and CRISIL AA Short-Term Bond Index
(17.5%)
