(An open-ended debt scheme predominantly investing in debt instruments
of Banks, Public Sector Undertakings, Public Financial Institutions and Municipal Bonds)
LimitedACTIV methodology of fund management
in strategic knowledge partnership with CRISIL
NFO opens on 15th and closes on 27th January 2021
Highlights of the Fund:
- Aim to construct a portfolio of highest-rated issuers
- Unique LimitedACTIV methodology of fund management
- Tax efficient returns with 4 indexation benefits
- Roll down strategy with target maturity ~ 3.5 years#
- Benefit from steepness in the 3-4 year curve
- Strategic knowledge partnership with CRISIL
# The scheme is currently following a ‘roll down’ investment approach with approximate tenure on a tactical basis. The same is subject to change depending on investment opportunities. The investment will be made in line with investment strategy and asset allocation as prescribed in the scheme related documents.
TRUST Mutual Fund has announced the launch of its maiden new fund offer (NFO) – TRUSTMF Banking & PSU Debt Fund. It is an open-ended debt scheme predominantly investing in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds. The NFO will open for subscription from 15th of January and close on 27th of January 2021. The fund will be managed by Anand Nevatia along with Sandeep Bagla.
The TRUSTMF Banking & PSU Debt Fund will follow a structured investment approach backed by a unique “LimitedACTIV’’ methodology, with the objective of delivering consistent risk-adjusted returns. The robust methodology has been developed in collaboration with CRISIL, who is the knowledge partner for initial debt schemes of TRUST Mutual Fund. The methodology will assist the fund management team in:
- Defining a high-quality investible universe of issuers
- Creating a model portfolio with broad-based weights on outstanding amounts
- Portfolio construction using model portfolio as the guiding framework
- Portfolio optimization with “LimitedACTIV” methodology (within predefined, back tested variance limits)
- CRISIL will periodically review the investible universe, portfolio and performance
Sandeep Bagla, CEO of TRUST AMC and the Co-Fund manager of the TRUSTMF Banking & PSU Debt Fund said, “At TRUST AMC, we want to make the process of investment in fixed income securities more systematic, transparent and objective. We want to communicate the mechanism of this process to our distributors and investors. For this we have tied up CRISIL who will be our strategic knowledge partner and that will help us make our investment process more robust.”
Anand Nevatia, Fund Manager of TRUSTMF Banking & PSU Debt Fund said, we aim to provide a safe and credible investment option to our investors. For our Banking & PSU Debt Fund, we will be currently following a roll down strategy with a target maturity of 3.5 years as the segment is offering decent spread over 3-year instruments.
Mr. Prasad Koparkar, Senior Director, CRISIL Research, said, “CRISIL believes this is a key milestone for the Indian asset management industry. We are pleased to be associated with TRUST AMC as a knowledge partner and support its pioneering initiative of creating a product with an independent research house. We believe our rich data, experience and expertise in the domain of fixed-income research, valuations and indices over the past two decades will help create relevant products for TRUST AMC”
Riskometer and Product Suitability Label
Investors understand that their
principal will be at Moderate Risk
This product is suitable for investors who are seeking*
- Regular income over short to medium term
- Investment primarily in debt and money market securities issued by Banks, PSU, PFI and Municipal Bonds
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.