The fund will invest primarily in top bank CDs.
Axis Mutual Fund today launched its new NFO in the market – ‘Axis Banking Debt Fund’, an open-ended debt scheme. The AMC claims that the product will provide better returns for investors looking for investment above three months.
“The fund is specially designed to invest in bank certificates of deposits (CDs) and we feel it is the right time to launch the product. The fund is for investors looking for investment beyond three months,” said Karan Datta, National Sales Head Axis Mutual Fund.
The scheme will invest 80 percent - 100 percent of assets in debt and money market instruments issued by banks with low to medium risk profile; and up to 20 percent of assets in CBLO, Repo, T-Bills and Government Securities with low risk profile.
Karan also added that since the fund is looking to invest in top rated bank CDs and therefore it has the potential to deliver better returns than liquid funds.
The scheme offers two options viz. growth and dividend option. Dividend option offers daily (only reinvestment), weekly, and monthly (payout & reinvestment) as sub-options. The fund closes on 7th June and re-opens on 12th June. The AMC expects to collect a minimum subscription amount of Rs 20 crore during the NFO period.
