Capitalmind Mutual Fund Filed Draft For Liquid Fund With SEBI

Capitalmind Mutual Fund is set to introduce a new offering in the liquid fund category. The scheme, Capitalmind Liquid Fund, aims to offer investors safety, liquidity, and optimal returns through investments in short-term debt and money market instruments. The fund will open for subscription post regulatory approval from SEBI.

Investment Strategy and Instruments under Capitalmind Liquid Fund

According to draft documents filed with SEBI, Capitalmind Liquid Fund will allocate up to 100% of its assets in debt and money market instruments having a residual maturity of up to 91 days. The objective is to balance returns while preserving capital and maintaining liquidity. The scheme will have at least 20% of its net assets in liquid instruments like cash, treasury bills, government securities, and repos on government securities.

The fund will consider investments in a wide spectrum of instruments, including certificates of deposit (CDs), commercial paper (CPs), treasury bills, corporate bonds, government securities, securitised debt instruments, and money market instruments. Debt derivatives such as interest rate swaps and forward rate agreements permitted by SEBI or RBI will also be considered.

What Is Excluded from Investment

Capitalmind Liquid Fund will steer clear of certain instruments, including overseas securities, equities or equity derivatives, ReITs and InvITs, AT1 and AT2 bonds, and short-term deposits in scheduled commercial banks. Instruments with credit enhancements or structured obligations, except those backed by government guarantees, will also be outside the investment purview.

Read More: DSP Mutual Fund Files Draft for Fixed Maturity Plan (FMP) With SEBI!

Fund Management and Offer Details

The fund will be managed by Prateek Jain, a CFA and M Com graduate with extensive experience in fixed-income management at major asset management companies. He also handles the Capitalmind Flexi Cap Fund. The new fund offer (NFO) price is ₹1,000 per unit, with a minimum purchase of ₹5,000 and multiples of ₹1 thereafter. For additional investments, the minimum amount is ₹1,000. SIP investments will begin from ₹1,000 as well.

Conclusion

Capitalmind Mutual Fund's Liquid Fund offers a structured and flexible investment option in the debt market space, targeting short-term investors looking for stability and liquidity. With a seasoned fund manager and diversified asset strategy, it stands aligned with typical liquid fund expectations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in Mutual Funds are subject to market risks. Read all related documents carefully before investing.