TRUST MF unveils Corporate Bond Fund; Check details here

TRUST Mutual Fund has unveiled the Corporate Bond Fund, an open-ended debt fund scheme. This new mutual fund will invest in corporate bonds with ratings of AA+ and higher.

The AA+ rating indicates that the bonds in which this mutual fund will invest are of very low credit risk.

The fund, which was launched on January 9, 2023, will accept investments until January 18, 2023. Within five days of allotment, the scheme reopens for continuous sale and repurchase.

The minimum subscription amount is 1000, and subsequent amounts are in multiples of Re 1. This product is best suited for investors looking for the best long-term returns. This explains why investors should consult with their financial advisors to see if the product aligns with their financial objectives.

Anand Nevatia, Fund Manager of TRUST Mutual Fund, will oversee the scheme. Anand Nevatia, who has over two decades of experience in the financial markets, manages all TRUST Mutual Fund schemes. Anand has been a member of the TRUST Group since 2003.

Sandeep Bagla, CEO of TRUST Mutual Fund, said, “We are excited to present TRUSTMF Corporate Bond Fund to our investors. In the current environment, investors can expect both interest income and likelihood of generating capital gains which will add to the returns. It would be ideal if an investor comes with a time horizon of more than a year and is looking for a relatively safe option.”

Anand Nevatia, Fund Manager, TRUST Mutual Fund, said, “Since March 2022, market yields in the 1-2 year corporate bond segment have risen by almost 250 bps to 7.50%, and the corporate yield curve is mostly flat beyond two years. We believe high and sticky core inflation is still a concern, and a high-interest scenario might prevail. Our new fund offer aims to take benefit of higher yields and maintain a maturity of 2-3 years in the normal scenario. ”

Under this scheme, both regular and direct plans are available. The former is for investors who want to invest via any distributor. The direct plan is for investors who want to invest directly without going through a distributor. This plan also has a lower expense ratio when distribution expenses, commissions, and so on are excluded. Aside from that, no commission for unit distribution will be paid/charged under this plan. The IDCW payout and re-investment options are only available on a monthly basis.