Religare Mutual Fund launches Credit Opportunities Fund

Religare MF today formally announced the launch of its new fund 'Religare Credit Opportunities Fund (an open ended income scheme). The scheme seeks to generate high level of current income (vis-a-vis treasury bills) consistent with preservation of capital and maintenance of liquidity by investing primarily in investment-grade debt securities and money market Instruments.

The fund aims to beet its benchmark by Investing in Instruments that offer superior yield and will Invest In short - term corporate bonds across the credit spectrum. The key focus would be to enhance the portfolio returns by Identifying optimum credit opportunities in the market i.e. by investing in instruments that offer superior yield at acceptable levels of risk.

Speaking on the occasion, Saurabh Nanavati, Chief Executive Officer, Religare Mutual Fund said, "Credit markets have stabilized, liquidity is plentiful and with the gradual economic recovery the prospective rewards for taking credit risk across fixed income markets are attractive. The fund aims to generate alpha (excess returns) for its investors, through strategies, which involve taking active positions across the credit curve. This differentiates it from other schemes currently available in the Indian markets, which are predominantly focused only on investing across the yield curve spectrum, and therefore, provides an ideal diversification tool to investors."

The fund offers Retail and Institutional plans. The minimum application amount is Rs 5000/- and in multiples of Re 1 under the retail plan and Rs 1 crore and in multiples of Re 1 under the institutional plan.

Units will be Issued at Rs. 10/-. No entry load will be charged on investments; however, an exit load of 0.25% will be applicable on Investments redeemed on or before 1 month from the date of allotment.

The fund is benchmarked to CRISIL Short term Bond Index. The new fund offer closes on August 25, 2009.

The stock was trading at Rs.388, up by Rs.1.30 or 0.34%. The stock hit an intraday high of Rs.435 and low of Rs.382.15.

The total traded quantity was 9206 compared to 2 week average of 2743.

Source : Equity Bulls

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