Canara Robeco MF launches Canara Robeco Banking and PSU Debt Fund

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Canara Robeco Mutual Fund has launched Canara Robeco Banking and PSU Debt Fund, an open-ended debt program that would invest primarily in debt securities of banks, public sector companies, public financial institutions and municipal bonds.

The offer of the new fund would be opened for a first subscription on July 29 and closed on August 12. Being an indefinite term loan plan, it would be open for subscription on a continuous basis, starting on or before August 29,

Canara Robeco Banking and PSU Debt Fund would be an actively managed program that would strive to invest in high-quality assets, primarily AAA-rated bank bonds and PSUs. The new fund would aim to manage duration and capture opportunities in the interest rate cycle and mispricing on the yield curve, according to the press release.

Speaking on the occasion, Avnish Jain, Head of Fixed Income and Fund Manager, said: “We will strive to maintain a conservative portfolio by exposing ourselves to high credit quality issuers with a risk profile of weak credit and to follow an optimal diversification among the various issuers within the banking sector and Space power supply.

To ensure the overall liquidity of the portfolio of Canara Robeco Banking and the PSU Debt Fund, “we would follow a three-pronged approach, limit risks by respecting issuer/sector limits, closely monitor liquidity and manage portfolio concentration and weighted average maturity,” added Jain. .

The fund’s benchmark index is the CRISIL Banking and PSU Debt Index.

From a tax point of view, when invested for more than three years, the gains are taxed at 20% after indexation. If held for less than 3 years, short-term capital gains are taxed at the individual’s slab rate.

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