Canara Robeco Mutual Fund has launched Canara Robeco Banking and PSU Debt Fund, an open-ended debt scheme that will primarily invest in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds.
The new fund offer will open for initial subscription on July 29 and close on August 12. Being an open-ended loan scheme, it will be open for subscription on an ongoing basis, effective on or before August 29.
Canara Robeco Banking and PSU Debt Fund will be an actively managed scheme that seeks to invest in high-rated assets, primarily AAA-rated bonds of banks and PSUs. According to the press release, the new fund will aim to manage duration and capture opportunities in the interest rate cycle and mis-pricing on the yield curve.
Speaking on the occasion, Avneesh Jain, Head-Fixed Income and Fund Manager, said, “We will endeavor to maintain a conservative portfolio through exposure to high credit quality issuers with low credit risk profiles and various issuers within banking. will follow optimal diversification among the PSU space.”
To ensure overall portfolio liquidity for Canara Robeco Banking & PSU Debt Fund, “we will follow a three-pronged approach, incorporate risk by adhering to issuer/sector limits, closely track liquidity, and portfolio concentration and The weighted average will manage the maturity”, said Jain. ,
The benchmark index of the fund is CRISIL Banking and PSU Debt Index.
In terms of taxation, when investments are held for more than three years, gains after indexation are taxed at 20%. If held for less than 3 years, short-term capital gains are taxed at the individual’s slab rates.
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