IIFL MF launches 'IIFL Short-term Income Fund'

MUMBAI: IIFL Mutual Fund today launched an open-ended income scheme 'IIFL Short-term Income Fund' with an objective to generate income and capital appreciation through investment in debt and money market instruments over shorter- term investment horizon.

The new fund offer, which opens for subscription on August 30, will close on September 11, 2013.

As per the fund house, the asset allocation will be in debt or money market instruments to the extent of 80-100 per cent with residual maturity of less than three years and upto 20 per cent in debt instruments with residual maturity of less than five years.

It also said that the scheme would invest in securities with an average maturity up to three years.

"Recent RBI measures to stabilise currency has led to short term interest rates spike to near peak levels in last five years along with inversion of yield curve.... In this background, the newly launched scheme will seek to achieve stable returns with focus on higher accrual income at the short end of the yield curve," Chief Executive Officer of IIFL AMC, Gopinath Natarajan said.

IIFL Mutual Fund, which is part of India Infoline Group, has an asset under management of around Rs 215 crore by the end of June quarter.