Mumbai: Religare mutual fund has today launched an open-ended income scheme called Religare Medium Term Bond Fund. The fund seeks to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. The scheme is benchmarked against the CRISIL Composite Bond Fund Index.
The scheme will invest in high quality corporate securities and bonds. The fund will also aim to capture positive valuation changes occurring due to changes in the shape of the yield curve. It will invest a minimum of 80% up to 100% in high quality debt securities having residual maturity up to 5 years.
“With the increasing stock market volatility, investors have turned cautious, we believe that portfolio diversification is key and bonds aim to provide regular income and lower volatility (relative to stocks) and can act as a cushion against the unpredictable ups and downs of the stock market. Investors who are more concerned about the stock market volatility should diversify and contain their portfolio risk with a bond fund. The Religare Medium Term Bond provides investors the opportunity, as the fund will aim to capture the current prevailing attractive yields in a high quality freshly constructed portfolio,” said Saurabh Nanavati, cxhief executive officer, Religare MF in a press note issued today.
The fund comes with growth and dividend options. The minimum application amount is Rs.5000. An exit load of 1% will be payable if redeemed on or before six months. Religare MF currently has four open-ended income schemes in its kitty.