The new entrant Religare Aegon, the 37th asset management company will start with its fixed income funds. The AMC filed offer documents with SEBI for two Liquid funds -- Religare Aegon Liquid Fund and Religare Aegon Liquid Plus Fund.
The Religare Aegon Liquid Fund will be an open-end liquid scheme, primarily investing in short term debt and money market instruments with a maturity profile of less than one year. While, Religare Aegon Liquid Plus Fund will be an open-end income scheme that can invest fully in money market instruments and up to 80 per cent in longer maturity debt instruments (more than one year).
Both the schemes will have retail, institutional and super institutional plans with growth and dividend option. The dividend payout and dividend reinvestment plans comes with three choice of daily, weekly and monthly dividend. The minimum application amount would be Rs 5000 for the retail plan, Rs 1 crore for institutional plan and Rs 10 crore for the super institutional plan. The annual recurring expenses for the three schemes will be 2.25 per cent, 2 per cent and 1.75 per cent respectively.
Ashish Nigam, the designated fund manager has been in the business for 11 years. He was previously with DBS Cholamandalam AMC as Head of Fixed Income responsible for the fixed income funds.
With the equity funds down and out in the falling markets, investors are more likely to take refuge in debt funds. Though there is uncertainty looming over the debt markets too due to fluctuating interest rate movements, the liquid and liquid-plus funds would be less affected by these fluctuations as the underlying assets are of shorter tenure.