In a policy move, Canbank Mutual Fund (MF) will consider moving out of assured schemes. A decision on this issue will be taken at a board meeting early next year.

Currently, Canbank MF has two close-ended assured return schemes - Cangilts and Cancigo. Cangilts (a government securities fund) has been providing assured returns of Rs 12.25, while Cancigo has given returns of 12.50% per annum.

According to news reports, Canbank MF plans to launch two new schemes - Cangilts (PGS) and Canliquid. Cangilts (a new gilts scheme) will be launched on December 22, while the exact launch date of the Canliquid (money-market fund) is to be decided.

Canbank MF's move to exit the assured returns schemes could be triggered by the fact that these schemes are a drain on its resources. Moreover, the danger of default is also high. Several other MFs have faced a problem in meeting their commitments on assured return schemes and are looking for exit options.

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