ITI Mutual Fund launches NFO for Dynamic Bond Fund, can start from Rs 5,000 | ITI Mutual Fund launches NFO for Dynamic Bond Fund, can start from Rs 5,000

ITI Mutual Fund launches NFO for Dynamic Bond Fund, can start from Rs 5,000 | ITI Mutual Fund launches NFO for Dynamic Bond Fund, can start from Rs 5,000

The fund aims to maximize returns through active management of the portfolio, which includes debt and money market instruments. (ITI Mutual Fund launches NFO for Dynamic Bond Fund, can start from Rs 5,000)

ITI Mutual Fund launches NFO for Dynamic Bond Fund, can start from Rs 5,000

ITI Mutual Fund Launches NFO for Dynamic Bond Fund

New Delhi: ITI Mutual Fund on Friday launched a new fund offering (NFO) for dynamic bond funds that will invest in instruments in the debt and money markets. The NFO will close on July 9 and the bond fund will be against the Crisil Dynamic Debit Index. This is the 13th fund launched by the Fund House, which started operations in April 2019. The fund aims to maximize returns through active management of the portfolio, which includes debt and money market instruments. The fund will pursue a strategy that gives investors the benefit of dynamic fund management through flexible asset allocation and active period management. (ITI Mutual Fund launches NFO for Dynamic Bond Fund, can start from Rs 5,000)

Here will be the investment

According to the fund house, most investments will be in AAA or A1 + (A1 +) or equivalent rated securities. Vikrant Mehta will manage the scheme. Dynamic bond funds are good for investors who find it difficult to make interest rate movements. These bond funds allow investors to rely on interest rate risk as their portfolio maturity may vary depending on the interest rate.

How much can you invest?

An individual can invest a minimum of Rs 5,000 in an NFO and then multiply by 1. The plan will have no entry or exit load. There are already more than 20 dynamic bond funds available in the market and these funds have returned an average of 4.77 per cent in the last one year. The returns are 7.63 per cent in three years, 7.14 per cent in five years and 8.30 per cent in 10 years.

In comparison, State Bank of India Fixed Deposits (FDs) grew by 5.1 per cent year-on-year, 6.7 per cent on 3-year basis, 7 per cent on 5-year basis and 8.7 per cent on 10-year basis. Dynamic bond funds have moderate risk compared to FDs and investors should keep this in mind. (ITI Mutual Fund launches NFO for Dynamic Bond Fund, can start from Rs 5,000)

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