Morgan Stanley MF launches ultra short-term fund

Morgan Stanley Mutual Fund today announced the launch of an open-ended debt fund 'Morgan Stanley Ultra Short-term Fund'.

The investment objective of the fund is to provide liquidity and generate reasonable returns from a portfolio of money market and short-term debt instruments, a company statement said.

The new fund offer, which has been opened for subscription from July 17, will close on July 24, 2013 and will open for repurchase from July 29, 2013.

The fund will be benchmarked against Crisil Liquid Fund Index, the fund house said.

Interestingly, the fund has been launched at a time when redemption pressure is high on the short-term debt funds post the RBI announcement to squeeze out liquidity from the system to bring stability in the domestic currency.