Upcoming NFO: Abakkus Liquid Fund Files Draft With SEBI

Abakkus Mutual Fund has submitted the Scheme Information Document for its Abakkus Liquid Fund to the Securities and Exchange Board of India on November 10, 2025, marking its first liquid fund offering. The scheme is structured as an open-ended liquid scheme with relatively low interest rate risk and moderate credit risk, classified under Potential Risk Class B I.

Investment Objective and Strategy

The fund aims to generate optimal returns consistent with moderate levels of risk and high liquidity by investing in debt and money market instruments. The scheme will invest exclusively in securities with maturity of up to 91 days only, maintaining strict compliance with liquid fund category requirements. The portfolio will allocate 0% to 100% of total assets in money market and debt instruments including triparty repo on government securities or treasury bills with specified maturity limits.

NFO Details and Pricing

The New Fund Offer price is fixed at ₹100 per unit with minimum target amount set at ₹20,00,00,000. Investors can subscribe with minimum lumpsum investment of ₹1,000 and in multiples of ₹1 thereafter, while systematic investment plan requires minimum ₹500 with at least 6 instalments. The NFO period dates were not specified in the draft document and will be announced closer to the launch date.

Read More: NFO Alert: Franklin Templeton Mutual Fund Launches India Multi-Factor Fund!

Plan Options and Structure

The scheme offers 2 plans namely Regular Plan and Direct Plan, each with Growth and Income Distribution cum Capital Withdrawal options. The IDCW option provides 4 frequencies including Daily, Weekly, Monthly and Quarterly with respective record dates. Default option will be Growth where Growth or IDCW Option is not indicated, and Monthly IDCW Reinvestment in case frequency is not specified.

Exit Load Structure

The scheme features graded exit load structure starting from 0.0070% on Day 1 and reducing progressively to 0.0065% on Day 2, 0.0060% on Day 3, 0.0055% on Day 4, 0.0050% on Day 5, and 0.0045% on Day 6. No exit load applies from Day 7 onwards, ensuring high liquidity characteristic of liquid funds after the initial week.

Fund Management

Sanjay Doshi, a 45 year old CFA with around 20 years of investment experience, will manage the scheme. Previously, he served as Senior Fund Manager at Abakkus Asset Manager and TCG Asset Management, managing AIF schemes and flagship funds including Power & Infrastructure Fund and Retirement Fund. The fund's performance will be benchmarked against CRISIL Liquid Debt A I TRI, selected from AMFI notified first tier benchmarks.

Expense Ratio and Asset Allocation

The scheme will charge up to 2% of daily net assets as total expense ratio within regulatory limits prescribed under SEBI Mutual Fund Regulations. The fund will maintain at least 20% of net assets in liquid assets, including cash, government securities, treasury bills and repo on government securities. Investment in securitised debt will not exceed 20% of net assets, while repo in corporate bonds can go up to 10% of net assets.

Conclusion

Abakkus Liquid Fund's filing with SEBI represents a strategic expansion into the liquid fund category with experienced fund management and transparent structure. The scheme offers investors a short-term investment option combining safety, liquidity and reasonable returns with maturity restricted to 91 days. With graded exit load structure and multiple plan options, the fund caters to diverse investor requirements while maintaining compliance with SEBI regulations.

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.

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