Trust Mutual Fund Launches Liquid Fund. Should you invest?

Trust Mutual Fund Launches Liquid Fund. Should you invest?

Trust Mutual Fund Launches Liquid Fund. Should you invest?

Trust Asset Management Company plans to launch a new fund offer. Trust Mutual Fund Liquid Fund. It is an open-ended liquid fund and will open for subscription on April 8th, 2021. As per the records, this is the second fund offered by the Trust MF. In January 2021, the fund house had launched NFO – Trust MF Banking & PSU Debt Fund.

The scheme will predominantly invest in debt & money market instruments. It will manage by Anand Nevatia. As of the source, the subscription period will close on April 22nd, 2021.

As per the SID, the scheme will follow a structured investment approach backed by a unique methodology, with the objective of delivering consistent risk-adjusted returns.

    • Defining a high-quality investable universe of issuers with a focus on long-term ratings.
    • Creating a model portfolio with broad-based weights on outstanding amounts.
    • Portfolio structure using the model portfolio as leading structure.
    • Securities optimization with inadequate active methodology.
    • Portfolio laddering across maturity buckets along with fragment allocations.

The MF house will create a collection of securities with loads based on outstanding issuance amounts, consisting of the highest-rated issuers with high liquidity. The liquidity will be high as portfolio liquidity depends on the credit quality & liquidity of its investments and not on the size of the portfolio.

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