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IDBI Mutual Fund will rename IDBI Corporate Debt Opportunities Fund to IDBICredit Risk Fund from March 27, IDBI Mutual Fund Trustee Co Ltd stated in a public notice.
The scheme will be classified as an open-ended debt scheme, that will primarily invest in AA and below-rated corporate bonds. Currently, the scheme is categorised as an open-ended income scheme.
Subsequently, the fund will allocate 65-75 percent in AA and below-rated corporate bonds, up to 35 percent will be deployed in AA+ and above-rated corporate bonds and money market instruments, and up to 10 percent will be in units issued by real estate and infrastructure investment trusts.
At present, the scheme allocates 80 percent of its corpus to debt securities, and 20 percent to money market instruments.
IDBI Mutual Fund has made these revisions to comply with regulations of Securities and Exchange Board of India that require fund houses to harmonise all their existing and future schemes into five broad categories and 36 sub-categories to enable ease in investing.
Unit holders, who do not agree with the changes, can avail of the exit option between February 23 and March 26, without paying any exit load, the company said.
All other features of the scheme will remain unchanged.
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