ICICI Prudential Mutual Fund has launched the Banking & Public Sector Undertakings (PSU) Debt Fund. This is the only open-ended debt fund in the fund house which would focus on these two segments of the market.
The fund would invest in debt, money market instruments and securities issued by banks or PSUs. The fund can also invest in fixed income securities issued by the government, corporates and multilateral agencies.
The fund would allocate up to 100 per cent of its asset in debt and money market instruments (including securities issued by banks and PSUs) while for debt entities, other than banks and PSUs, it would allocate up to 35 per cent.
The fund would be managed by Chaitanya Pande who has a 14-year industry experience and holds a PGDM from IMI, Delhi, and a B.Sc degree from St Stephen’s College, Delhi.
The fund has both growth and dividend options. There is no exit load applicable. The minimum application amount is Rs 5,000 while minimum additional application amount is Rs 1,000.
The NFO opens on December 28, 2009 while it closes on December 29 this year.
The fund has been benchmarked against CRISIL Short Term Bond Fund Index.