Religare Mutual Fund today announced the launch of its new fund Religare Bank Debt Fund, an open ended debt scheme. The fund seeks to generate optimal returns by investing in a portfolio of debt and money market instruments issued primarily by banks. The new fund offer opens for subscription today and will close for subscription on December 24, 2012.
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, T- bills, CBLO, G-sec, units of debt and liquid mutual fund schemes.
Speaking on the occasion, Saurabh Nanavati, chief executive officer, Religare MF said, ''Risk averse investors looking for a portfolio with relatively low credit risk and offering superior liquidity can consider investing in a bank debt fund.''
The fund offers growth and dividend options with daily reinvestment and monthly reinvestment and payout facility. In addition, the fund also offers SIP facility. An exit load of 1% will be payable on investments redeemed on or before 1 year from the date of allotment.
The fund is benchmarked to CRISIL Short Term Bond Fund Index. The fund manager of the scheme is Nitish Sikand.