LIC Mutual Fund has launched LIC MF Short Term Debt Fund- an open-ended short-term debt fund scheme investing in instruments Macaulay duration between 1 year and 3 years opportunities.
The fund manager will use quantitative analysis while accessing the short-term debt opportunity and invest in securities that are rated investment grade by credit rating agencies or in unrated debt securities, which the investment manager believes to be of equivalent quality, says the fund house.
The fund manager will emphasize on credit analysis to determine credit risk and the investment process will follow a top down approach considering aspects like interest rate view, term structure of interest rates, systemic liquidity, RBI’s policy stance, inflationary expectations and so on.
The fund house says that the scheme is beneficial for the investors who have moderate risk appetite and an investment horizon for 3 years.
Marzban Irani will manage the fund.