TrustMF Corporate Bond Fund NFO: Everything you need to know

9 Jan 2023 , 11:18 AM

Trust Mutual Fund is launching NFO under its “debt category”, named TrustMF Corporate Bond Fund. This open-ended debt fund will invest in equity AA+ and above rated corporate bonds with relatively high interest rate risk and moderate credit risk.

Investment strategy: The fund management team will endeavor to maintain a consistent performance in the scheme by maintaining a balance between safety, liquidity and profitability aspects of various investments. The fund manager will try to achieve an optimal risk return balance for management of the fixed income portfolios. The scheme aims to generate optimal returns for medium to long-term by investing in relatively high interest rate risk and relatively low credit risk instruments.

Asset allocation: TrustMF Corporate Bond Fund will hold an allocation of 0% to 100% of its assets in Corporate bonds, Debt Instruments & Money Market Instruments, and Units issued by REITs & InvITs. These instruments with relatively high interest rate risk and relatively low credit risk.

Who should invest?

Investors with moderately high risk appetite seeking regular income, in the long run should invest in the fund. Investors can gain from indexation benefits and limited incidence of taxation at the time of withdrawal, as there is no application of entry or exit load, supporting emergency withdrawals.

Risk associated: Moderately high level of risk.

Benchmark: CRISIL Corporate Bond Fund BIII Index

Fund Managers: Mr Anand Nevatia 

The NFO is available for subscription from January 09 to January 18. The schemes will reopen for continuous sale and repurchase within five Business Days from the date of allotment. The fund offers systematic investment solutions like SIP and SWP to create a flexible investment plan. The minimum subscription amount is Rs 1,000/- and in multiples of any amount thereafter. 

It offers Regular Plan and Direct Plan. Each plan offers Growth and Income options. Click here to invest in TrustMF Corporate Bond Fund.