Now Reading: Monarch Mutual Fund files for maiden overnight scheme with Sebi
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Monarch Mutual Fund files for maiden overnight scheme with Sebi
Monarch Mutual Fund files for maiden overnight scheme with Sebi
Monarch Mutual Fund has filed draft papers with Sebi for its first scheme, an open-ended overnight debt fund. The fund will invest primarily in debt and money market instruments maturing within one…
The Story in Brief
Monarch Mutual Fund has filed draft papers with Sebi for its first scheme, an open-ended overnight debt fund. The fund will invest primarily in debt and money market instruments maturing within one business day, seeking low risk, high liquidity and returns linked to overnight rates.
The scheme will be benchmarked against the CRISIL Liquid Overnight Index and managed by Sanjay Motta. It will accept lump-sum investments from Rs 5,000 and SIPs from Rs 1,000, with at least six instalments. The fund may invest up to 100% of its assets in eligible instruments. Monarch Mutual Fund is a venture of Monarch Networth Capital, which received Sebi’s in-principle approval to begin mutual fund operations earlier this year.
The Indian Opinion
An overnight fund is not a guaranteed-return product, despite the low-risk label that often dominates sales pitches. Its returns will track short-term rates, which can change, while the scheme still carries market and operational risks. Investors should compare its expense ratio, exit terms and actual returns with existing overnight funds before choosing it. The useful test will be whether Monarch can deliver competitive post-cost returns without compromising daily liquidity.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
