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Shinsei Offers 2 NFOs

The newest fund house in India starts its India journey through two debt funds

Mutual funds (MFs) seem to have come back into action with a renewed vigour. Now that the markets are witnessing a rising trend, not only are the existing funds trying to rise up to the challenge posed by a changing scenario, but new funds have also started surfacing, quite opposite to the trend which was prevalent till now.

Keeping true to its promise, Shinsei Asset Management Company (India) Private Limited (Shinsei AMC) has launched its two maiden schemes - ‘Shinsei Liquid Fund’ and ‘Shinsei PSU Bond Fund – Ultra Short Term Plan.

Currently, the AMC has launched only one plan, the ‘Ultra Short Term Plan’ under the Shinsei PSU Bond fund. The average residual maturity of the portfolio under this plan will not exceed one year.

Shinsei will be the 36th active fund house in India to launch its funds. It had earlier announced launching of three new funds, of which it has already come up with two. The third fund in the offing is Shinsei Industry Leaders Fund.

Shinsei PSU Bond Fund is an open-ended income scheme which seeks to generate income from a portfolio constituted of debt and money market securities issued predominantly by public sector undertakings (PSUs) and nationalized banks.

On the other hand, ‘Shinsei Liquid Fund’ is an open ended liquid scheme which seeks to generate reasonable returns commensurate with low risk and high liquidity. It does so from a portfolio constituted of money market instruments and short-term debt instruments with a residual maturity of up to 91 days.

The new fund offer (NFO) of two funds opened for subscription on June 30 and will close on July 6.

The group aims to break even within 3-5 years and is presently still assessing the market scenario. Depending upon that, Shinsei AMC plans to bring in another 6-8 funds in the coming 18 months’ time frame.

It would be pertinent to mention here that JP Morgan Chase and Company, South Korea’s Mirae Asset Financial Group, Pioneer Global Investments Limited, the fund arm of Italian bank UniCredit SpA and France’s Axa SA have already launched funds in India.