Money Market Fund

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Lack of repo suggests RBI tolerance of higher money mkt rates: Analysts

This is the second block deal by Invesco in seven months, which offloaded 7.8% stake in Zee Entertainment in April

Loan, deposit growth gap at 10-year high

LIC Mutual Fund is targeting to collect Rs 1,000 crore from its new money market fund launched on Wednesday. The new fund is an open-ended debt scheme that facilitates investing in money market instruments, it said in a statement. Nityanand Prabhu, executive director and business head of LIC MF, told PTI that it has set an internal target of garnering at least Rs 1,000 crore from the scheme during the primary subscription period. The fund, targeted mainly at corporate investors, is open for two days from Wednesday for the subscription. It will reopen on August 3, Rahul Singh, a senior fund manager -- fixed income & a vice-president at LIC Mutual Fund, said. Prabhu said the fund launch comes at an appropriate time as spreads between corporate bonds and the repo rate are retracing towards their mean of 1.07 per cent, making money market funds a favourable option to invest. The fund proposes to invest in money market securities having up to one-year maturity, along with an option to

The month-end assets under management of the fund stood at Rs 7,203 crore as of December 2021, up from Rs 2,573 crore in December 2018.

The fund featured in the top 30 percentile of the money market funds category in CRISIL Mutual Fund Ranking (CMFR) for 10 consecutive quarters ended June 2021

Most schemes in this category avoid taking any credit risk

In response to each policy rate cut by the central bank, the bond market passed on the cuts almost immediately

The RBI said MFs showed a marked preference for long-term debt while also holding equity shares.

The central had till now been simultaneously buying and selling bonds of equal amounts to keep the operation liquidity neutral.

AT1 bonds are hybrid instruments and pay a slightly higher rate of interest compared to similar non-perpetual bonds.

Yu'e Bao has accrued 370 million account holders and $211 billion in assets in just four years. As its model is replicated, the government is enforcing new regulations