Reliance Mutual Fund has launched Reliance Nivesh Lakshya Fund an open –ended long duration debt scheme that aims to capture current interest rate and shield investors against downward movement in interest rates.
The NFO of the scheme is currently open for subscription and closes on July 2. The scheme will invest in high quality long-term g-secs with 25-30 year maturity and holds them until maturity. The fund will receive interest payments underlying bonds twice a year while the principal will be available on maturity.
Though there are pure accrual products in mutual fund space, they are generally concentrated in the shorter duration basket. With a long duration accrual fund, the fund house aims to fill this gap. Prashant Pimple and Kinjal Desai will manage the fund.
This product is aimed at investors having a long-term investment horizon of 10-15 years. It is positioned to be a fund for long-term investor goals.
