LIC MF announced the launch of Money Markets Fund, an open-ended debt scheme that facilitates investing in money market instruments. This new fund will allow investors to generate income through investment in a portfolio comprising of money market instruments, the AMC said in a press release.
The spreads between corporate bond and the repo rate retracing towards its mean of 1.07%, making Money Market Fund a favourable option to invest. The fund proposes to invest in money market securities having matured up to 1-year, along with an option to invest in both sovereign and money market instrument to arrive at an optimum asset allocation between the asset classes, the AMC added in the press release.
The AMC said, it endeavours to build a high credit quality portfolio with focus on accruals and the maturity profile of instruments will be selected in line with the market outlook. The New Fund Offer for the fund opens for subscription on July 28, 2022, closes on July 29, 2022 and scheme reopens on August 3, 2022.
Rahul Singh, Senior Fund Manager – Fixed Income & Vice President at LIC Mutual Fund, said, “Quality investment is not attained overnight, but with due diligence. Our vision of launching this NFO is to provide for reasonable returns with investment in quality credits. We believe this will ease investment plans for investors willing to invest for short-term and seek lower interest rate risk.”