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NFO of TrustMF Money Market Fund

Trust Asset Management has introduced a new money market fund called TrustMF Money Market Fund

Trust Mutual Funds is owned by the Trust Group, which comprises professionals from the financial services and mutual fund industry, and has introduced a New Fund Offer (NFO) of a money market mutual fund. This mutual fund will be the fifth fund by the group in the fixed investment category. The fund manager of the fund is Mr Anand Nevatia, a seasoned professional with over two decades of experience with the Trust Group. He is also a CFA charter holder before joining the Trust Group. 

A New Fund Offer (NFO) is an offer for fresh money by which a mutual fund raises money from investors and then invests it into stocks, bonds, etc., as per the fund objective defined in the new fund offer document. An NFO raises the money for the first time and then invests it in the financial securities as per the fund objective. 

Related: New Fund Offer (NFO): All you need to know about this first-time subscription offer for a new scheme

NFO of TrustMF Money Market Fund

The NFO of TrustMF Money Market Fund will open on 5th August and close on 11th August. It is an open-ended debt scheme with the objective to provide fixed returns with very less interest rate risk and moderate credit risk. The fund will invest in money market securities with expiries of less than 1 year. However, there is no guarantee that the investment objective will be realized as per the NFO document. 

The average returns of the top money market funds in the last 3 years are around 5%. The risk of money market instruments is low. As per the CEO of Trust MF, Mr Sandeep Bagla, the current steepness of the money market yield curve suggests good returns from money market instruments. If you are looking to park your funds for 3 to 6 months, then the fund can provide good returns as per the CEO. Investors looking for short-term investments with low risk can consider investing in the NFO. 

Related: Investing in Money markets VS Stock Markets for Dummies

If you are looking for a fund to park your funds for 3 to 6 months horizon, you can consider investing in the NFO of TrustMF Money Market Fund. Mr Anand Nevatia is a seasoned professional, and this adds credibility to the NFO. You can utilize the fund to park your money to get good returns with low-interest rate risk and moderate credit risk. Also read How IPOs are different from NFOs?

What is NFO in Mutual fund | Should you invest in NFO | NFO vs IPO | New fund offer

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.