Religare MF has launched a new fund Religare Medium Term Bond Fund' ( an open ended income scheme). The Fund seeks to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments.
A minimum of 80% of assets and upto 100% will be invested in high quality debt securities having residual maturity up to 5 years. The scheme is benchmarked to the CRISIL Composite Bond Fund Index.
The investment strategy for the fund would be to build a portfolio which is high on yield from an asset mix of high quality corporate securities and bonds. In addition, the fund will also aim to capture positive valuation changes occurring due to changes in the shape of the yield curve.
Speaking on the occasion Saurabh Nanavati, Chief Executive Officer, Religare MF said "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".
The fund will offer Growth and Dividend options. The minimum application amount is Rs.5000/- and in multiples of Re.1/-. Units will be issued at Rs. 10/-. An exit of 1% will be payable on investments redeemed on or before 6 months from the date of allotment.