LIC Mutual Fund announced the launch of 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 new fund offer (NFO) opens on January 11, 2019 and closes on January 25, 2019. The fund will be managed by Mr. Marzban Irani (Debt). Investors can make investment in the scheme in a lump sum.
The investment objective of the scheme is to generate returns commensurate with risk from a portfolio constituted of Debt securities and/or Money Market instruments. However, there can be no assurance that the investment objective of the scheme will be achieved
The fund manager will use a disciplined quantitative analysis while accessing the Short-Term Debt opportunity and will invest in those debt 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.
The fund manager will emphasize on credit analysis, in order 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, Government borrowing program, Fiscal Deficit, global interest rates, currency movements, etc.
The fund is beneficial for the investors who are looking for reasonable returns over short to medium term and investment in debt securities and money market instruments with a Macaulay duration between 1 year and 3 years. Also, the investors who have moderate risk appetite and an investment horizon for 3 years.