NFO will close on 9th July. This is the 13th fund launched by the fund house. The objective of the fund is to maximize returns through proactive management of the portfolio which includes debt and money market instruments.
ITI Mutual Fund
ITI Mutual Fund on Friday launched a new fund offer (NFO) for Dynamic Bond Fund, which will invest in debt and money market instruments. The NFO will close on July 9 and the bond fund will be benchmarked against CRISIL Dynamic Debt Index. This is the 13th fund launched by the fund house, which commenced operations in April 2019.
The objective of the fund is to maximize returns through proactive management of the portfolio which includes debt and money market instruments. The fund will follow a strategy that gives investors the advantage of dynamic fund management through flexible asset allocation and active duration management.
will invest here
According to the fund house, majority of the investments will be in AAA or A1+ or equivalent rated securities. Vikrant Mehta will manage this scheme. Dynamic bond funds are good for investors who find it difficult to gauge interest rate movements. These bond funds help investors to hedge interest rate risk as they can vary their portfolio maturity according to the interest rate.
How much can you invest
One can invest a minimum of Rs 5,000 in NFO and thereafter in multiples of 1. There will be no entry or exit load in the scheme. There are already more than 20 dynamic bond funds available in the market and these funds have given an average return of 4.77 per cent in the last one year. Whereas the return of three years is 7.63 percent, in 5 years 7.14 percent and in 10 years is 8.30 percent.
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