This open-ended income scheme will invest in fixed income securities, gold ETFs, equity and equity related securities.
Indiabulls Mutual Fund has filed an offer document with SEBI for launching an open-ended income scheme called Indiabulls MIP Gold Plus.
The scheme will look at generating regular income through investments in fixed income securities, gold ETFs, equity and equity related securities. The fund aims to collect Rs 20 crore through the NFO.
Under normal circumstances, the scheme will invest in money market and debt instruments, equity and equity-related securities and gold ETFs. It will also invest in securitised debt and pass through certificates (PTCs) with a cap of 50% of the net assets of the scheme. However, there will be no investments in foreign securitised debt.
The debt investments will be managed by Raju Sharma. Aviral Gupta will manage investments in equity and gold ETF investments. The scheme’s portfolio will be managed actively. The fund manager’s investment decisions will be influenced by interest rate outlook, compliance with SEBI guidelines, risk management guidelines, yield to maturity of the instrument, yield curve analysis, liquidity of the instrument, credit rating and credit spreads.
Investment in equity and equity related securities will be to a maximum of 25% of net assets of the scheme. Investment in securitised debt shall be to a maximum of 50% of net assets. If permitted by SEBI, the scheme may also engage in securities lending. Exposure to gold ETFs would be in the range of 5% to 25%.
The fund manager will invest a minimum of 65% of net assets in various fixed income instruments such as corporate and PSU bonds, government securities, CBLO/repo and money market instruments bearing low to medium risk profile. The scheme is most likely to invest in debt & money market instruments in the range of 65% to 95%. Investments in fixed income securities will be made as per the prevailing market conditions, the macroeconomic environment and general liquidity.
The performance of the scheme will be benchmarked against a customized benchmark, 75%-CRISIL MIP Blended Fund Index and 25%-price of gold.
The scheme offers growth and dividend options. The dividend option comes with dividend payout and reinvestment at a monthly frequency. There will be no entry load. An exit load will be charged if the exit is within one year.
Further, distributors who have opted in would be allowed to charge the existing investor a sum of Rs100 per subscription of Rs 10,000 and above as transaction charge and Rs150 from the first time investor. However, no charges are applicable for investments below Rs 10,000.
