In a press release, IDBI said that the fund aims to invest in good quality rated corporate bonds through rigorous selection and monitoring process. The product is suitable for investors with medium to long term investment horizon.
The investment objective of the scheme is to provide investors with regular income and opportunities for capital appreciation while maintaining liquidity through active management of a diversified portfolio comprising of debt and money market instruments across the investment grade credit rating and maturity spectrum, said the press release.
Debasish Mallick, MD & Chief Executive Officer, IDBI Asset Management Ltd said “The objective of the scheme is generation of interest income for investors. The launch has been timed to take advantage of the expected elevation in yield at the time of initial launch. The scheme proposes to invest in good quality rated bank and corporate papers of various maturity and duration and adopt a buy and hold strategy as well as benefit from opportunities that may arise on the credit curve.”
The fund will be benchmarked against CRISIL Short Term Bond Fund Index.
