IANS | 11 Jan, 2019
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 Yogesh Patil (Equity) and
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.
