Asset management company Religare Invesco Mutual Fund has launched an open-ended income scheme Religare Invesco Corporate Bond Opportunities Fund.
"The current high yields offered by corporate bonds present an attractive investment opportunity. In an improving economic environment, we expect credit upgrades outnumbering credit downgrades going forward, which was not the case around three years ago," Religare Invesco MF's Managing Director and Chief Executive Officer Saurabh Nanavati said.
The fund offer opens for subscription today and will close on August 28, 2014.
"Individual security selection becomes the key in managing a corporate bond fund, which offers a high yield and has the potential of a credit upgrade due to improving fundamentals," he said.
The fund seeks to generate returns and capital appreciation by predominantly investing in corporate debt securities of varying maturities across the credit spectrum.
The fund is a credit-focussed bond product seeking a high level of accrual income, a company release said.
At least 80 per cent of net assets of the fund would be invested in private and public sector corporate bonds with an aim to take advantage of high-yielding corporate bonds.
Investments would pre-dominantly be made in corporate bonds across varying maturities with ratings comprising between 'AAA' and 'A-' by a credit-rating agency, the release said.
The new fund offers growth, dividend payout and dividend reinvestment options units would be issued at Rs 1,000 each. For lumpsum purchase, the minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter, the release said.
For Systematic Investment Plan (SIP) investments, the minimum application amount is Rs 1,000 under the monthly SIP option and Rs 2,000 under the quarterly SIP option and in multiples of Re 1 thereafter.
An exit load of 2 per cent would be payable on investments redeemed on or before 18 months from the date of allotment, it added.
