This open-ended debt scheme will be actively managed; it will invest in debt and money market instruments.
BNP Paribas Mutual Fund has filed an offer document with SEBI to launch an open-ended debt scheme called BNP Paribas Medium Term Income Fund.
BNP Paribas Medium Term Income Fund seeks to optimise returns by investing in a portfolio of debt and money market instruments with weighted average maturity up to 5 years.
The scheme will allocate its assets between debt and money market instruments. The minimum allocation in debt instruments will be 10% and 95% will be the maximum. The minimum allocation in money market instruments will be 5% with a maximum level of 90%. The scheme may also include securitised debt up to 30% of the net assets invested in debt. The fund will be managed actively as interest rates will impact the performance. It will consider the CRISIL Composite Bond Fund Index as the benchmark to track returns.
Minimum amount for application in the NFO is Rs 5,000.
Being an open ended scheme, the scheme will offer facilities such as SIP, STP, SWP and transactions through a stock exchange platform.
The fund will be managed by Puneet Lal, Head-Fixed Income, who also manages a variety of other schemes with BNP Paribas.
