Sunil Singhania’s Abakkus Mutual Fund files draft document with Sebi for its maiden offering, a liquid fund

Sunil Singhania’s Abakkus Mutual Fund has filed a draft document with Sebi for its maiden offering - a liquid fund. Abakkus Liquid Fund will be an open-ended liquid scheme with a relatively low interest rate risk and moderate credit risk.

The investment objective of the scheme will be to generate optimal returns consistent with moderate levels of risk and high liquidity by investing in debt and money market instruments.

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The performance of this liquid fund will be benchmarked against CRISIL Liquid Debt A-I TRI and will be managed by Sanjay Doshi.

For lumpsum investment, the minimum investment amount will be Rs 1,000 and in multiples of Re 1 thereafter. For the Systematic Investment Plan (SIP), the minimum investment amount will be Rs 500 and in multiples of Re 1 thereafter, with a minimum of six instalments.

The liquid fund will allocate 0-100% in money market and debt instruments (including Triparty Repo on government securities or T-Bills/Repo/Reverse Repo (including Corporate Bond Repo) with maturity up to 91 days.

Being an open-ended, actively managed debt scheme, the fund management team will endeavour to maintain a consistent performance in the scheme by maintaining a balance between safety, liquidity, and profitability aspects of various investments. The fund manager will try to achieve an optimal risk-return balance for management of the fixed-income portfolios. The investments in debt instruments carry various risks like interest rate risk, liquidity risk, default risk, purchasing power risk, etc.

The fund will be suitable for investors seeking income over short term and want investments in debt and money market instruments with maturity up to 91 days. The principal invested in this fund will be at “low to moderate risk” according to the riskometer of the scheme.

The draft document of the liquid fund mentioned that the fund house has filed for a flexi cap fund, also - Abakkus Flexi Cap Fund, which is pending Sebi’s approval, and Sanjay Doshi will also manage this fund.

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Last month, the fund announced the appointment of Vaiibhavv Chugh as the new Chief Executive Officer (CEO) with effect from October 1.

According to a press release by the fund house, Chugh brings a wealth of experience and a distinguished track record in the asset management industry, having most recently served as Director and Head of Sales at White Oak Capital Management.

In August, Abakkus Asset Manager announced to receive final approval from the Securities and Exchange Board of India (SEBI) to start its mutual fund operations under the name “Abakkus Mutual Fund”.