Mumbai: AIG Investments announced the launch of the AIG Short Term Fund – an open ended income scheme. Its primary investment objective is to seek to generate income from a portfolio constituted of short to medium term debt and money market securities. The scheme will invest the entire corpus in short-term debt and money market securities.
The New Fund Offer will be open for purchase from 29February, 2008 to 4March, 2008 and will reopen for ongoing purchase/redemption no later than 14March, 2008.
According to Saurabh Sonthalia, CEO, AIG Global Asset Management Company (India) Pvt. Ltd said, “The AIG Short Term Fund is our third fixed income product. Both the earlier products – AIG India Liquid Fund and AIG India Treasury Plus Fund - have done very well vis-à-vis their peer group without diluting the credit quality.
These schemes are rated AAAf by Crisil. The new fund has also been assigned a provisional rating of MfAAA by ICRA.
Investors will benefit by investing in this fresh short term fund in a month when historically interest rates have tended to be artificially high on the back of tight liquidity. Over a 2-3 month period, these interest rates on short to medium term corporate bonds are likely to come down, leading to capital gains and handsome returns for investors.
It is estimated that in March, short-term funds, as compared to three month FMPs, will be a superior option for investors.