December 8, 2022

Asset administration firm LIC Mutual Fund has utilized for Cash Market Fund, an open-ended debt scheme investing in cash market devices. The scheme has a comparatively low rate of interest danger and reasonable credit score danger.

Cash market mutual funds are used to handle short-term money wants. Since they’ve a mean maturity of 1 12 months, these are termed cash market devices.

Cash market devices embody business papers, business payments, treasury payments, company bonds, authorities securities, state improvement mortgage (SDL) having an unexpired maturity as much as one 12 months, name or discover cash, certificates of deposit, usance payments, Triparty Repo and some other like devices as specified by the Reserve Financial institution of India infrequently.

The benchmark for the LIC MF Cash Market Fund could be Nifty Cash Market Index.

As per the scheme info doc (SID), investments in derivatives may be as much as 50% of the web belongings of the Scheme. Funding in derivatives shall be for hedging, portfolio balancing and such different functions as could also be permitted infrequently.

As per the fund home, the scheme is not going to spend money on American depositary receipt (ADR), world depositary receipt (GDR) or international securities. The scheme will even not interact briefly promoting and investing in unrated debt devices.

The minimal subscription quantity for every plan could be 5,000 and within the a number of of Re 1, thereafter.

In case of buyers opting to change into the scheme from present schemes of LIC Mutual Fund throughout the brand new fund provide interval, the minimal quantity is 5,000 and in a number of of Re 1, thereafter.

SBI Financial savings Fund, Aditya Birla Solar Life Cash Supervisor Fund and HDFC Cash Market Fund are the largest cash market schemes in India with belongings price 24,757 crore, 16,480 crore and 13,273 crore, respectively.

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