JioBlackRock Mutual Fund files draft with SEBI for Corporate Bond Fund: Check details

JioBlackRock Mutual Fund has filed the draft papers for its Corporate Bond Fund with the Securities and Exchange Board of India (SEBI).

The New Fund Offer (NFO) date is yet to be announced.

Name of the scheme: JioBlackRock Corporate Bond Fund Category: Debt scheme-Corporate bond fund Type: An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds. The fund as per the Scheme Information Document carries a relatively high interest rate risk and moderate credit risk Face value: ₹10 per unit (during NFO) New fund offer price: ₹1000 per unit

The investment objective of the scheme is to generate income through investments predominantly in AA+ and above rated corporate debt.

The benchmark for the scheme is the NIFTY Corporate Bond Index A-II. The NIFTYCorporate Bond Index A-II\ has been selected from amongst those notified by AMFI for the scheme, the scheme document added.

The scheme will invest minimum 80% of its assets in corporate debt. Other than that, the fund can also deploy its corpus in other debt and money market instruments, and units of InvITs.

The investment strategy would be towards generating returns through a diversified portfolio of corporate debt seeking to capture the term and credit spreads. Every investment opportunity in corporate debt would be assessed with regard to parameters such as credit risk, interest rate risk and liquidity risk among others.

1. Arun Ramachandran: Fund Manager –Fixed Income at JioBlackRock AMC
2. Vikrant Mehta: Senior Fund Manager at JioBlackRock AMC
3. Siddharth Deb:Senior Fund Manager at JioBlackRock AMC

The fund carries no exit load.

During NFO: ₹500 and any amount thereafter Ongoing: ₹500 and any amount thereafter SIP: ₹500 and in multiples of ₹1 thereafter STP/SWP: ₹1,000 (minimum 6 instalments)

The fund carries a "moderate" risk as per the risk-o-meter. The scheme may be suitable for conservative-to-moderate investors with an investment horizon of 3-5 years and looking for steady income together with moderate capital growth.