The new fund offer or NFOs of all three funds are open for subscription and will close on July 2. The funds will open for continuous sale and repurchase within five business days of allotment date.
The schemes will offer only direct plans and the plan shall offer only growth options. The minimum application amount for lumpsum investment in all three funds is Rs 500 and any amount thereafter.
The minimum amount for Systematic Investment Plan (SIP) is Rs 500 and in multiples of Re 1 thereafter in all the three debt funds. The funds will be managed by Vikrant Mehta, Arun Ramachandran, and Siddharth Deb.
Also Read | Sensex vaults 11,000 points from April lows. Which mutual funds should you buy?
JioBlackRock Liquid Fund
JioBlackRock Liquid Fund is an open ended liquid scheme with a relatively low interest rate risk and relatively low credit risk. The investment objective of the scheme is to generate regular income through investment in a portfolio consisting of money market and debt instruments with residual maturity up to 91 days.The scheme is suitable for investors seeking regular income over a short term investment horizon and who want to generate income by investing in money market and debt instruments with maturity up to 91 days, according to the scheme information document (SID) of the fund.
The scheme will be benchmarked against Nifty Liquid Index A-I. The fund will be managed by Arun Ramachandran, Vikrant Mehta, and Siddharth Deb.
If an investor exits from the scheme one day after the date of allotment, the exit load as a % of redemption proceeds will be 0.0070%. If the exit is on day 2, then the exit load as a % of redemption proceeds will be 0.0065%.
If the exit is on day 3 and day 4, the exit load as a % of redemption proceeds will be 0.0060% and 0.0055% respectively. On day 5, if an investor exits from the scheme, the exit load as a % of redemption proceeds will be 0.0050% and on day 6 will be 0.0045% and will be 0.0000% from day 7 onwards.
The scheme will allocate 0-100% in debt instruments and money market instruments with residual maturity up to 91 days. The investment strategy would be towards generating regular returns through a portfolio of debt and money market instruments seeking to capture the term and credit spreads. The scheme shall endeavor to develop a well-diversified portfolio of debt and money market instruments.
Liquid funds offer better returns than a regular savings account while maintaining a relatively low level of risk. These funds make investment in debt and money market securities with maturity of upto 91 days only. These funds are a good option for building or parking an emergency fund, or for temporarily holding funds
Also Read | JioBlackRock Liquid Fund NFO to open on June 30. A safe bet for regular income?
JioBlackRock Money Market Fund
JioBlackRock Money Market Fund is an open ended debt scheme investing in money market instruments with a relatively low interest rate risk and moderate credit risk.
The investment objective of the Scheme is to generate regular income through investment in a portfolio comprising money market instruments with residual maturity up to one year.
The scheme will be benchmarked against NIFTY Money Market Index A-I. The fund will be managed by Vikrant Mehta, Arun Ramachandran, and Siddharth Deb. The exit load on this money market fund is nil.
The scheme will allocate 0-100% in Money Market Instruments having residual maturity up to one year. The investment strategy would be towards generating regular returns through a portfolio of money market instruments seeking to capture the term and credit spreads. The scheme shall endeavor to develop a well-diversified portfolio of money market instruments.
Money market funds invest in high-quality money market instruments and can generate slightly better returns than liquid funds, although they carry marginally higher risk. They are well-suited for investors looking to park surplus money from bonuses, windfalls, or contingency reserves, and who are seeking a balance between safety, return, and short-term liquidity. According to the Sebi mandate, money market funds make investment in money market instruments having maturity up to one year.
Also Read | 11 NFOs to open for subscription this week, 3 belong to JioBlackRock Mutual Fund
JioBlackRock Overnight Fund
JioBlackRock Overnight Fund is an open ended debt scheme investing in overnight securities with a relatively low interest rate risk and relatively low credit risk.
The investment objective of the scheme is to generate regular income through investment in a portfolio comprising debt and money market instruments with overnight maturity. The scheme will be benchmarked against Nifty 1D Rate Index.
The fund will allocate 0-100% in overnight securities or debt and money market instruments maturing on or before next business day. The total assets of the scheme will be invested in debt securities and money market instruments maturing on or before next business day. In case of securities with put and call options (daily or otherwise) the residual maturity (deemed or actual) shall be on or before the next business day.
According to a release by ICRA, the provisional rating assigned to all three funds is [ICRA]A1+mfs.
Overnight funds are ideal for investors who need a very safe place to park their money for just a few days. These funds invest in instruments with a one-day maturity and carry minimal risk. They are well-suited for highly conservative investors, corporates, or individuals who want instant liquidity without exposing their money to market volatility.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
