NFO: TRUST MF Banking and PSU Debt Fund, an open-ended debt scheme, launched

TRUST Mutual Fund has announced the launch of its maiden new fund offer (NFO) - TRUST MF Banking & PSU Debt Fund. It is an open-ended debt scheme predominantly investing in debt instruments of banks, public sector undertakings, public financial institutions and municipal bonds. The NFO will open for subscription from 15th of Jan and close on 27th of Jan 2021. The fund will be managed by Anand Nevatia along with Sandeep Bagla.

The TRUST MF Banking & PSU Debt Fund will follow a structured investment approach backed by a unique “LimitedACTIV’’ methodology, with the objective of delivering consistent risk adjusted returns. The robust methodology has been developed in collaboration with CRISIL, who is the knowledge partner for initial debt schemes of TRUST Mutual Fund.

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The methodology will assist the fund management team in:

1) Defining a high-quality investable universe of issuers
2) Creating a model portfolio with broad-based weights on outstanding amounts
3) Portfolio construction using model portfolio as the guiding framework
4) Portfolio optimization with “LimitedACTIV” methodology (within predefined, back tested variance limits)
5) Crisil will periodically review the investable universe, portfolio and performance

Stock Markets Today:

Ajit Mishra, VP - Research, Religare Broking says that After a tepid opening, the bulls were back in charge led by positive global cues and healthy buying interest in banking stocks. The Nifty index ended with healthy gains of 0.6% at 14,563 levels. The broader markets too ended with decent gains of 0.4% and 0.3% respectively. On the sector front, Telecom, Auto and Oil & Gas were the top gainers whereas Consumer Durables and Healthcare ended with losses. 

Markets will react to the macroeconomic data (IIP & CPI) in early trade on Wednesday. Further, earnings announcements from select IT majors such as Infosys and Wipro would also remain on the participants’ radar. Religare Broking advise participants to align their positions according to the trend but strictly avoid overleveraging at current levels.