IDBI launches Debt Opportunities Fund
Posted on Feb 13 2014 | IBNS
Mumbai, Feb 12 : IDBI Mutual Fund on Wednesday announced the launch of the IDBI Debt Opportunities Fund, an open ended income scheme, which is an accrual based product with focus on generation of interest income.
The fund will invest in good quality rated corporate bonds through rigorous selection and monitoring process.
The product is suitable for investors with medium to long term investment horizon.
The New Fund Offer (NFO) will open for subscription on Feb 11 and close on Feb 24.
The units will be available at par (Rs.10) during the NFO and at NAV related prices once the scheme reopens for subscription.
The scheme will re-open for continuous sale and repurchase from Mar 11.
The investment objective of the scheme is to provide investors with regular income and opportunities for capital appreciation while maintaining liquidity through active management of a diversified portfolio comprising of debt and money market instruments across the investment grade credit rating and maturity spectrum.
Speaking on the occasion, Debasish Mallick, MD and Chief Executive Officer, IDBI Asset Management Ltd said, "The objective of the scheme is generation of interest income for investors. The launch has been timed to take advantage of the expected elevation in yield at the time of initial launch."
Mallick added, "The scheme proposes to invest in good quality rated bank and corporate papers of various maturity and duration and adopt a buy and hold strategy as well as benefit from opportunities that may arise on the credit curve."