ASK Mutual Fund Prepares Launch of Liquid Fund After Receiving Regulatory Nod

ASK Mutual Fund Prepares Launch of Liquid Fund After Receiving Regulatory Nod​

ASK Mutual Fund is moving toward launching its inaugural mutual fund scheme, the ASK Liquid Fund. The filing of draft papers with the Securities and Exchange Board of India (SEBI) signals a major step for the alternatives player in the market. This move follows earlier regulatory approval received by ASK Mutual Fund this year, paving the way for new product introductions.

Details of the Proposed ASK Liquid Fund​

The proposed scheme is designed as an open-ended liquid fund. It will focus its investments primarily on debt and money market instruments that have a residual maturity of up to 91 days. The fund aims to generate consistent income by investing in various money market and debt instruments. However, it is important to note that there is no guarantee regarding the achievement of this investment objective.

The scheme will be benchmarked against the CRISIL Liquid Debt A-I TRI. According to the draft Scheme Information Document (SID), the fund has broad flexibility in its investment strategy. It can dedicate anywhere from 0% to 100% of its assets to debt and money market instruments with maturities up to 91 days.

Investment Flexibility and Instruments​

The ASK Liquid Fund is structured to offer diverse exposure possibilities to investors. Beyond core debt and money market investments, the fund may also invest in several specialized derivatives and secured products. These include credit default swaps, securitised debt, corporate bond repos, and units of other mutual fund schemes, all within limits prescribed by SEBI.

The management expertise behind this launch is significant. Dinesh Ahuja, who serves as Head-Fixed Income at ASK Mutual Fund, will manage the scheme. Mr. Ahuja brings substantial experience from SBI Funds Management, where he previously served as a fixed income fund manager and held roles including CIO for PMS and AIF.

Investor Details and Next Steps​

The minimum investment required during the New Fund Offer (NFO) period is set at Rs 500. Subsequent investments will be accepted in multiples of Re 1. While the exact NFO dates have yet to be announced, the fund is planned to reopen for continuous sale and repurchase within five business days following allotment.

The launch of ASK Liquid Fund marks a formalized entry into the structured mutual fund space for the alternatives player. By providing investors with targeted exposure through this liquid debt instrument, ASK Mutual Fund aims to cater to specific income-oriented investment needs in the market.