Indiabulls Mutual Fund has announced a New Fund Offer (NFO) for Indiabulls Banking & PSU Debt Fund. The NFO period begins on April 25, 2019 and will close on May 9, 2019. The open-ended scheme will open for continuous subscriptions and redemptions within 5 days of allotment of its units. The scheme aims to provide income to its investors over the short to medium term by predominantly investing in debt and money market instruments of issued by banks, public sector undertakings (PSUs), public financial institutions and municipal bonds.
Asset Allocation of Indiabulls Banking & PSU Debt Fund
Under normal circumstances, Indiabulls Banking & PSU Debt Fund will invest its assets across securities in the following manner:
| Asset Class | Asset Allocation | |
| Minimum | Maximum | |
| Debt and money market instruments issued by banks
public sector undertakings (PSUs) and public financial institutions (PFIs) & municipal bonds |
80% | 100% |
| Debt and money market instruments issued by other entities, government securities issued by central & state government | 0% | 20% |
| Units issued by REITs and InvITs | 0% | 10% |
The scheme may invest in repo/ reverse repo in corporate debt securities/government debt securities up to 10% of the net assets of the scheme. The scheme may also engage in securities lending/ borrowing and short selling against the borrowed securities. However, the scheme will not engage in credit default swaps or make investments in equity linked debentures.
Benchmark of Indiabulls Banking & PSU Debt Fund
The performance of Indiabulls Banking & PSU Debt Fund will be benchmarked against CRISIL Banking & PSU Debt Index. The return details of the index are as follows:
| Index | 1 Year Return | 3 Year Return | 5 Year Return |
| CRISIL Banking & PSU Debt Index | 7.24% | 8.07% | 9.02% |
(Data as on March 31, 2019; Source: CRISIL)
Fund Manager of Indiabulls Banking & PSU Debt Fund
Indiabulls Banking & PSU Debt Fund will be managed by Mr. Vikrant Mehta.
Key information about Indiabulls Banking & PSU Debt Fund NFO
| NFO period | April 25, 2019 – May 9, 2019 |
| Minimum Application Amount | Lump sum – Rs. 5,000
SIP – Rs. 500 |
| Exit load | 0.25% – Redemption/Switch on or before 3 days of subscription
Nil – Redemption/Switch post completion of 3 days |
| Benchmark | CRISIL Banking & PSU Debt Index |
| Fund Manager | Vikrant Mehta |
