The new fund offer or the NFO of the scheme is open for subscription and it will close on October 23. The scheme will re-open for subscriptions/redemptions on October 26.
The performance of the scheme will be benchmarked against CRISIL Liquid Overnight Index. The scheme will be managed by Alok Bahl and Utsav Modi.
The primary objective of the scheme is to generate returns commensurate with low risk and providing high level of liquidity, through investments made in debt and money market securities having maturity of one business day including TREPS (Tri-Party Repo) and reverse repo.
The scheme will offer regular and direct plans with both growth and IDCW options. The minimum application amount for growth option is Rs 5,000 and in multiples of Re 1 thereafter. The minimum investment amount for IDCW option is Rs 25,000 and in multiples of Re 1 thereafter. At present, the scheme does not offer SIP facility. The minimum investment amount for monthly SWP is Rs 2,000 with minimum six instalments.
The scheme will allocate 95-100% of its assets in debt, money market instruments, cash and cash equivalents (including repo) with overnight maturity / maturing on or before next business day, and 0-5% in G-secs and/or T-bills with a residual maturity of upto 30 days. The scheme will be managed actively in line with the investment objectives and asset allocation of the scheme.Investments made by the scheme would be in accordance with the investment objective of the scheme and the provisions of the SEBI (MF) regulations. The scheme is suitable for investors who are seeking income over short term and high liquidity and want investment in debt and money market instruments with overnight maturity.
Should you invest?
ETMutualFunds always ask investors to invest in an NFO only if it offers something unique – that is, some investment option that is not available in the market or adding something to the existing available option.
There are around 34 schemes already in the overnight fund category. There is no difference in the returns when it comes to very short duration categories such as overnight funds and liquid funds. Helios is a new fund house and this is their first product. Many mutual fund investors are excited about the new fund house because it also marks the comeback of Samir Arora, who was considered a successful fund manager two decades ago.
