Mumbai: Asset management firm Morgan Stanley Mutual Fund on Monday launched an open-ended liquid scheme, which is similar to short-term deposits and is considered to be low risk investment.

The objective of Morgan Stanley Liquid Fund is to generate returns, with low risk and high liquidity through a portfolio of money market and short-term debt securities with residual maturity of up to 91 days, the firm said in a statement.

"The launch of our liquid fund will give us the platform required to access the institutional client segment, which is a core long term focus for us," Morgan Stanley MF CEO Anthony Heredia said in the statement.

The new scheme opens from Tuesday and closes on September 7 and has a minimum investment option of Rs 1,000.

The scheme would be managed by the firm's head of fixed income Ritesh Jain, the firm said.

According to the Association of Mutual Funds in India (AMFI), the fund house's average assets under management were Rs 2,052.54 crore as on June 30.