TRUST Mutual Fund has launched an open-ended debt fund scheme called Corporate Bond Fund.
This new mutual fund will park money in AA+ and above-rated corporate bonds.
AA+ rating means that the bonds this mutual fund will invest in will have very low credit risk.
The fund launched on January 9, 2023, will continue to accept investments till January 18, 2023. The scheme re-opens for continuous sale and repurchase within five days from the date of allotment.
The minimum subscription amount is ₹1000, and in multiples of Re 1, thereafter. This product is best suited for investors seeking optimal returns over the medium to long term. This explains why investors must consult their financial advisors to check if the product is in sync with their financial goals.
Both the regular and direct plans are available under this scheme. The former is for investors who wish to route their investment through any distributor. The direct plan is for investors who invest directly without routing the investments through any distributor. Also, this plan has a lower expense ratio excluding distribution expenses, commission, etc. Apart, no commission for the distribution of units will be paid/charged under this plan. The IDCW payout and IDCW re-investment options are available with monthly frequency only.
Both the regular and direct plan(s), offer the below options/sub-options/facilities.
| Options | Sub-Options/Facilities | Frequency of Issuance | Record Date |
| Growth | Nil | Nil | Nil |
Income Distribution cum Capital Withdrawal (IDCW) | Monthly (IDCW Reinvestment and IDCW Payout) | Monthly | 25th of each month |
| Source: Scheme Information Document | |||
This fund will track CRISIL Corporate Bond Fund BIII Index as the benchmark and will be managed by Anand Nevatia. This scheme, like other funds, has no entry fee. The exit load is also “Nil”. The Risk-o-meter describes the scheme as “Moderately Risky”.