Trust Mutual Fund launches short term fund

TRUST Asset Management Company has announced the launch of a new fund – TRUSTMF Short Term Fund. The NFO will be open for subscription from 20th July to 3rd August and will be managed by Anand Nevatia, Fund Manager, TRUST Mutual Fund. This is the third launch from TRUST Mutual Fund.

The fund house has said that the steepness in the yield curve combined with roll down opportunity may provide a way to generate capital gains. According to the press release, the fund will focus on top quality investible universe of filtered AAA issuers and focus on consistent risk adjusted returns in back testing of Model Portfolio prepared by

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Sandeep Bagla, CEO, TRUST Mutual Fund said, “Short Term Income Funds have emerged as the most reliable fixed income category, having delivered consistent returns in times of volatile interest rates as well as uncertain credit environment. At TRUST Mutual Fund, we have crafted an innovative short term fund for our investors, which will aim to deliver consistent returns by taking advantage of the inherent steepness in the yield curve, ideal for a minimum 6-12 month investment horizon.”

“Our research shows that the steepness on the short end of the curve, particularly in the 1-3 year segment, is far higher than historical averages. This, coupled with fact that the portfolio will focus on only select AAA-rated issuers and sovereign bonds, makes our short duration strategy fairly watertight when it comes to delivering consistent returns for our investors,” Anand Nevatia, Fund Manager of TRUST Short Term Fund.