LIC Mutual Fund is targeting to collect Rs 1,000 crore from its new money market fund launched on Wednesday.
The new fund is an open-ended debt scheme that facilitates investing in money market instruments, it said in a statement.
Nityanand Prabhu, executive director and business head of LIC MF, told PTI that it has set an internal target of garnering at least Rs 1,000 crore from the scheme during the primary subscription period.
The fund, targeted mainly at corporate investors, is open for two days from Wednesday for the subscription. It will reopen on August 3, Rahul Singh, a senior fund manager — fixed income & a vice-president at LIC Mutual Fund, said.
Prabhu said the fund launch comes at an appropriate time as spreads between corporate bonds and the repo rate are retracing towards their mean of 1.07 per cent, making money market funds a favourable option to invest.
The fund proposes to invest in money market securities having up to one-year maturity, along with an option to
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