Investors can now invest an amount equivalent to the dollar rate in PineBridge India – US Equity Fund.
PineBridge Mutual Fund has started a facility called ‘Dollar SIP’ which allows investors to invest a fixed amount of US dollars on a specific date at a fixed interval in PineBridge India – US Equity Fund.
Unlike a regular SIP in which investors invest a fixed sum in rupees, this facility allows them to invest in dollars. The fund house will convert USD in rupee while investing in the scheme.
The amount which will be deducted from the investor’s bank account every month will fluctuate according to the changes in rupee rate. One can choose to invest a minimum of $ 100 every month. For instance, if you choose to invest $ 100 every month and if the dollar rate is Rs. 50, then Rs. 5,000 will be deducted in the first month. In the next month if the rupee depreciates and the dollar’s value increases to Rs. 55 then Rs. 5500 will be deducted.
Investors can cap the maximum amount which can be debited from each installment to shield themselves from adverse fluctuations in the exchange rate.
The fund house said that the facility is useful for people who are planning to save money regularly for a long period in order to meet their future requirements like child’s higher education or a vacation abroad.
Existing investors of PineBridge wanting to subscribe to this facility have to submit a “Dollar SIP Auto Debit Form’ along with a cancelled cheque leaf of the bank account registered for Dollar SIP. New investors have to fill up an application form along with the above mentioned documents.
The RBI reference rate prevailing on 7th day prior to the transaction day prior to the transaction day will be used for converting dollar to rupee. The redemption amount will be paid in rupees. Non Resident Indians, Person of Indian Origin and Overseas Citizen of India are allowed to use this facility.
PineBridge Mutual Fund manages assets of Rs. 649 crore as on March 2014.
