Business

LIC Mutual Fund's Short Term Debt Fund offer opens


Mumbai, Jan 11 (IANS): State-run LIC Mutual Fund on Friday launched an open-ended short term debt fund scheme for investing in instruments of "Macaulay duration" between one and three years as a new fund offer (NFO) called "LIC MF Short Term Debt Fund" that will close on January 25.

In a statement here, the company said that investors can make a lump sum investment in the fund being managed by Marzban Irani (Debt).

"The investment objective of the scheme is to generate income returns commensurate with risk from a portfolio constituted of debt securities and/or money market instruments," it said.

"However, there can be no assurance that the investment objective of the scheme will be achieved."

The Macaulay duration signifies the formula used by portfolio managers of the weighted average term-to-maturity of the cash flows from a bond. 

According to the statement, 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.

The Life Insurance Corp (LIC) associate company said the fund is beneficial for investors who are looking for reasonable returns over short to medium term, as well as investment in debt securities and money market instruments with a Macaulay duration between one and three years. 


Top Stories

Leave a Comment

Title : LIC Mutual Fund's Short Term Debt Fund offer opens


 
 
 
 

 
You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.


Security Validation

Enter the characters in the image