Upcoming NFO: Shriram Mutual Fund Filed Draft for Money Market Fund with SEBI

Shriram Mutual Fund has filed a draft Scheme Information Document (SID) with the SEBI for the proposed Shriram Money Market Fund.  

The scheme is planned as an open-ended debt fund and will be offered as part of Shriram Mutual Fund’s debt category lineup. Details related to the new fund offer dates are yet to be announced.  

Scheme Type and Investment Objective 

The proposed fund is categorised as a money market fund. As per the draft document, its investment objective is to generate regular income by investing in money market instruments with a residual maturity of up to 1 year.  

The SID states that the objective may not necessarily be achieved. The scheme has been assigned a relatively low interest rate risk and moderate credit risk classification under the SEBI risk-o-meter framework.  

Asset Allocation  

The scheme may invest up to 100% of its assets in money market instruments such as treasury bills, certificates of deposit, commercial paper, repos, reverse repos and short-term government securities.  

At least 10% of the net assets will be maintained in liquid assets, including cash and government securities. Exposure to debt derivatives is permitted up to 50% of net assets, while credit default swaps are capped at 10%.  

Plans, Options and Transaction Details 

Shriram Money Market Fund will offer two plans, Direct and Regular both with a growth option only. No income distribution option has been proposed. Units will be available at a face value of ₹1,000 during the new fund offer.  

The scheme will not be listed on stock exchanges. As an open-ended fund, it will be available for purchase and redemption on all business days at NAV-based prices. Redemption proceeds are expected to be credited within three working days.  

Exit Load, Expenses and Benchmark 

The draft SID specifies that no entry load or exit load will be applicable. The total recurring expenses are estimated at up to 2% of daily net assets, subject to SEBI-prescribed limits.  

The Direct plan will carry a lower expense ratio compared with the Regular plan. The scheme will be benchmarked against the NIFTY Money Market Index A-I Total Return Index.  

Read More: Neo Asset Management Debuts India’s First Multi-AMC Fund via GIFT City! 

Conclusion 

The draft filing outlines the structure, investment limits, costs and operational features of the proposed Shriram Money Market Fund. Final launch details will depend on SEBI’s review and observations.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/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.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.