Mahindra Mutual Fund will launch two new open-ended schemes, Bal Vikas Yojana and Badhat Yojana, on April 20. The NFO of these funds will remain open for subscription until May 4.
While Bal Vikas Yojana is a goal oriented balanced fund for children’s education and marriage Bhadhat Yojana is a pure equity fund for wealth creation.
Talking about Mahindra Mutual Fund Bal Vikas Yojana, the fund house said: “In this scheme parents, grandparents, uncles, aunts, family friends and other well-wishers can all gift units of the fund to a child. This can be done any number of times and in any amount so long as the child is less than 18 years of age. All the money for one child goes into one account. In that respect this scheme is different from all other children’s funds.”
The scheme will invest 40-60% of the total corpus in equity, 5-15% in arbitrage instruments and 25-55% in debt and money market instruments.
Mahindra Mutual Fund Badhat Yojana, though, plans to generate capital appreciation over medium to long term by investing predominantly in equity and derivatives. “The fund will follow multi-cap structure to create a quality portfolio. In addition, the fund can increase its allocation in debt instruments in a volatile market to reduce the portfolio risk,” said Ashutosh Bishnoi, CEO, Mahindra Mutual Fund.
Rahul Pal and Ratish Varier will co-manage Bal Vikas Fund while Ratish will manage the Badhat Yojana.
The CEO of Mahindra Mutual Fund said that his fund house aims to reach out to 20,000 new clients across 150 cities. The company will leverage the distribution network of its parent and IFAs to mop up inflows, he added.
Mahindra Mutual Fund targets rural India to market its products. Launched in July 2016, the fund house manages assets of Rs.2,000 crore as on March 2017.
