Mirae Asset Mutual Fund has sought the approval of the Securities and Exchange Board of India (SEBI) to launch Mirae Asset Debt Opportunities Fund, according to information on the regulator's website.
The open-ended income scheme will invest at least 65 percent of its corpus in corporate debt/bonds, and up to 35 percent in debt and money market instruments.
Investments in REITs (Real Estate Investment Trusts) and InVITs (infrastructure investment trusts) has also been capped at 10 percent.
In January, this year, SEBI had allowed mutual funds to invest in REITs and InVITs to make real estate and infrastructure investments trusts more attractive for investors.
A mutual fund is permitted to invest only up to 5 percent of its net asset value in units of a single issuer of alternative securities. The maximum allowed investment in alternative instruments by a single fund is capped at 10 percent.
The move is part of SEBI's effort to get more investors into REITs and InvITs.
Both REITs and InvITs are expected to help garner billions of dollars into the country's real estate and infrastructure segments.
Plans: Direct and regular
Options: Growth and dividend
Exit Load: --2 percent if redeemed on or before 12 months from the date of allotment;
--1 percent if redeemed after 12 months but before 18 months;
--0.50 percent if redeemed after 18 months but before 24 months from the date of allotment
--Nil if redeemed after 24 months from the date of allotment
Minimum application amount: Rs 5,000 and in multiples of one rupee thereafter
Benchmark Index: CRISIL Short Term Bond Fund Index
Fund Manager: Mahendra Jajoo, Head-Fixed Income