Mumbai: Fidelity Fund Management Pvt Ltd launched a liquid plus fund on 20 September.
Fidelity Liquid Plus Fund, open for initial subscription till September 21, would invest at least 65% of the assets in debt and money market instruments with average maturity of up to one year, the fund house said in product note posted on its website.
It can also invest up to 35% of the assets in debt instruments with average maturity of more than one year.
Liquid plus funds are emerging as a popular option for corporate investors looking for marginally better returns and tax efficiency at slightly higher risk than cash funds.
Assets of such funds swelled to about Rs866 billion at the end of August from Rs129 billion at December-end, data from fund tracker ICRA Online Ltd showed.
Fidelity mutual fund managed assets worth about Rs94 billion at the end of August, data from Association of Mutual Funds in India showed.