The scheme will invest in instruments issued primarily by banks.
Religare Mutual Fund today announced the launch of its new open-ended debt fund called Religare Bank Debt Fund. According to Saurabh Nanavati, Chief Executive Officer, Religare MF the fund is suitable for risk-averse investors looking for a portfolio with relatively low credit risk.
Axis had launched a similar fund called Axis Banking Debt Fund in June this year. Principal also has a fund called Principal Bank CD which invests in bank CDs.
Objective
The fund aims to generate returns by investing in debt and money market instruments issued primarily by banks.
NFO Date
The new fund offer opens for subscription on December 10th and will close on December 24th, 2012.
Scheme allocation
The scheme will invest 80% -100% of assets in debt & money market instruments issued by banks while up to 20% of the assets will be invested in securities issued by public financial Institutions, treasury bills, CBLOs, government securities, units of debt and liquid mutual fund schemes.
Exit Load
1% if redeemed on or before one year from the date of allotment.
Benchmark
The fund is benchmarked to CRISIL Short Term Bond Fund Index.
Fund Manager
Nitish Sikand
