Mumbai: Canara Robeco Asset Management has launched a fund that will invest in both debt and money market instruments and gold exchange traded funds called Canara Robeco InDiGo. The Fund will open for subscription on May 19 and will close on June 10. The scheme will invest a minimum of 65 percent of the corpus in Indian debt and money market instruments, and up to 35 percent in gold ETFs. The scheme will be benchmarked against the CRISIL Short-Term Bond Fund Index and the price of gold. It will try to generate additional yield from gold investment without taking additional duration risk or credit risk on the fixed income portfolio. An exit load of one percent will be applicable to those who opt out of the scheme within a year of the date of allotment. "Given the current market volatility and rising interest rate environment, investments into higher accrual instruments are the way forward. The portfolio aims to provide higher liquidity and low duration. Gold allocation in the portfolio would aim to generate capital appreciation and provide alpha to the portfolio," said Ritesh Jain, Head - Fixed Income, CRAM.